Refer to the information provided in Figure 4.6 below to answer the question(s) that follow.Equilibrium in this market occurs at the intersection of curves S and D.
Figure 4.6Refer to Figure 4.6. At equilibrium, consumer surplus is area
A. A.
B. A + B + C.
C. E + F + G.
D. G.
Answer: B
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According to supply-siders, an switch from consumption to savings by households will
a. lead to a permanent increase in output-per-worker. b. lead to a temporary increase in output-per-worker. c. lead to a decline in output-per-worker. d. not change output-per-worker.
If the legal reserve requirement is decreased, the money multiplier is decreased
Indicate whether the statement is true or false
To determine the marginal physical product of labor, you must
a. hold total output constant and calculate how much revenue an additional worker generates b. hold capital constant and calculate how much revenue an additional worker generates hold capital constant c. hold all other factors of production constant and calculate how much output an additional worker produces d. hold labor constant and calculate how much output an additional worker produces e. hold labor constant and calculate how much revenue an additional worker generates
The long-run Phillips curve would shift to the right if
a. the money supply growth rate decreased or if labor markets become more flexible. b. the money supply growth rate decreased, but not if labor markets become more flexible. c. labor markets become more flexible, but not if the money supply growth rate decreased. d. None of the above is correct.