An increase in the money wage rate will cause the aggregate supply curve to shift
A. outward, which means the quantity supplied at any price level decreases.
B. outward, which means the quantity supplied at any price level increases.
C. inward, which means the quantity supplied at any price level increases.
D. inward, which means the quantity supplied at any price level decreases.
Answer: D
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According to the segmented markets theory of the term structure
A) bonds of one maturity are close substitutes for bonds of other maturities, therefore, interest rates on bonds of different maturities move together over time. B) the interest rate for each maturity bond is determined by supply and demand for that maturity bond. C) investors' strong preferences for short-term relative to long-term bonds explains why yield curves typically slope downward. D) because of the positive term premium, the yield curve will not be observed to be downward-sloping.
A world-renowned brain surgeon can type twice as fast as her secretarial assistant. Which of the following statements is true in this situation?
a. The secretary has an absolute advantage in typing. b. The surgeon should do her own typing to save money. c. The surgeon should fire the assistant and work weekends and evenings to stay up on her typing. d. The surgeon should spend her time doing brain surgery and allow her secretary to do the typing because the secretary has a comparative advantage in typing. e. The surgeon should spend her time doing brain surgery and allow her secretary to do the typing because the surgeon has a comparative advantage in typing.
In monopoly, _____
a. the firm's demand curve is the market demand curve for the product b. the marginal revenue is less than the price c. the firm can set its price anywhere but will enhance its profits by raising or lowering the price, depending on the circumstances d. all of these
When companies reduce their inventories
A. the amount of the change gets subtracted from the GDP. B. the amount of the change has no effect on the GDP. C. net exports go up. D. the amount of the change gets added to the GDP.