According to real business cycle theorists, if the long-run aggregate supply (LRAS) curve shifts to the left, Real GDP __________, the price level __________, the demand for labor __________, money wages __________, real wages __________, and workers choose to work __________
A) falls; falls; rises; fall; fall; less
B) falls; rises; rises; fall; rise; more
C) falls; rises; falls; fall; fall; less
D) rises; rises; falls; fall; rise; more
E) rises; falls; rises; fall; fall; more
C
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The largest and fastest-growing category of federal government expenditures is
A) transfer payments. B) grants to state and local governments. C) interest on the national debt. D) national park spending.
Your income rises from $1,000 a year to $10,000 and your purchases of beer increase from 10 to 20. What number below most closely approximates your income elasticity over this range?
A. 2.5 B. 4 C. 1 D. 0.4
The MPC is 0.90 and there are no income taxes or imports. If government expenditures on goods and services increases by $2.0 billion, after the multiplier effect works out, aggregate expenditure increases by
A) $2.22 billion. B) $2.0 billion. C) $10 billion. D) $20 billion. E) $1.8 billion.
If your cumulative Grade Point Average (GPA) after two years of college is 3.0, and your grades for the current semester average 3.5, what will happen to your cumulative GPA? Explain the similarity of this example to the case of marginal cost and average cost.
What will be an ideal response?