If you were a Keynesian economist, you would believe that the economy
a. will always move toward full-employment real GDP
b. has a tendency to generate inflation regardless of whether it's at full employment real GDP or not
c. will decrease unemployment by lowering wage rates until the labor market is in equilibrium
d. is driven by the supply-side of the market
e. may be in equilibrium at less than full employment
E
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If the foreign income decrease, then we might expect net export spending to:
A. increase. B. decrease. C. remain constant. D. there is not enough information to determine what would happen.
In foreign exchange markets, demand and supply become closely interrelated, because a person or firm that demands one currency must at the same time _____________ another currency—and vice versa.
a. supply b. create c. demand d. locate
Demand tends to be:
A. more inelastic in the short term than in the long term. B. more elastic in the short term than in the long term. C. equally elastic in the short term and in the long term. D. None of the statements is correct.
Table 21.1Units of LaborUnits of Output00115235345452What is the marginal physical product of the second unit of labor in Table 21.1?
A. 17. B. 35. C. 5. D. 20.