The income effect of a wage increase:
a. results in an increase in the quantity of labor supplied.
b. results in a decrease in the quantity of labor supplied.
c. has no impact on the quantity of labor supplied
d. results in a decrease in the quantity of leisure enjoyed.
b
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Starting from long-run equilibrium, a war that raises government purchases results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; potential C. higher; higher D. lower; higher
Consumer surplus is the
A) value of a good expressed in dollars. B) price of a good expressed in dollars. C) value of a good minus the price paid for it summed over the quantity bought. D) value of a good plus the price paid for it summed over the quantity bought.
What are resale price maintenance, tying arrangements, and predatory pricing?
What will be an ideal response?
Income has risen in the simple Keynesian model. This could be the result of:,
a. an equal increase in government spending and taxes. b. an increase in unplanned investment. c. an increase in taxes d. a decrease in autonomous consumption. e. none of the above