How are the following three questions related: 1) Do all demand curves slope downward? 2) How do wages affect labor supply? 3) How do interest rates affect household saving?
a. They all relate to macroeconomics.
b. They all relate to monetary economics.
c. They all relate to the theory of consumer choice.
d. They are not related to each other in any way.
c
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Suppose that wages and prices are quite flexible, so that the short-run aggregate supply curve is steep. In that case, ________
A) policies to stabilize inflation are probably needed more than policies to stabilize economic activity B) supply shocks will destabilize inflation, but have minimal impact on output C) demand shocks will destabilize output, but have minimal impact on inflation D) all of the above E) none of the above
What is the primary difference between a mixed strategy and a pure strategy?
A) Pure strategies are always dominated strategies. B) Mixed strategies call for randomizing over possible actions, pure strategies do not. C) Pure strategies are much more common than mixed strategies. D) Mixed strategies are not optimal whereas pure strategies are.
Which nation listed below is successfully transitioning from a planned economy to a hybrid market economy?
A. People’s Republic of China B. Japan C. United Kingdom D. United States
Aggregate demand is the sum of
a. C + I + G + (X ? IM). b. C + I + X. c. C + I + X ? IM. d. C + I + G.