An adverse supply shock would directly ________ labor productivity by changing the amount of output that can be produced with any given amount of capital and labor. It would also indirectly ________ average labor productivity through changes in the level of employment.
A. increase; decrease
B. decrease; decrease
C. increase; increase
D. decrease; increase
Answer: D
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Suppose a perfectly competitive firm and a monopolist are both charging $5 for their respective products. From this, one can infer that:
A. the competitive firm is charging too much, and the monopolist is charging too little. B. the marginal benefit from selling an additional unit of output is $5 for the competitive firm and less than $5 for the monopolist. C. the marginal benefit from selling an additional unit of output is $5 for both firms. D. the marginal benefit from selling an additional unit of output is less than $5 for both firms.
The services British capital provides in Spain are a service export from Britain
A) therefore they are subtracted from British GDP in calculating British GNP. B) therefore they are added to Spanish GDP in calculating Spanish GDP. C) therefore they are added to British GDP in calculating British GNP. D) therefore they are added to Spanish GNP in calculating Spanish GDP. E) therefore they are subtracted from Spanish GNP.
Evidence on the existence of relative PPP shows that:
A) the evidence for relative PPP is scanty and theory is large discredited B) the evidence for relative PPP is hit or miss, and so one should exercise cations in using relative PP to predict changes in exchange rates C) relative PPP is an approximate guide to predicting the relationship between changes in inflation and exchange rates over long periods such as decades d) relative ppp holds nearly perfectly in the short and long run, are used with great accuracy to make predictions
What shifts the short-run aggregate supply curve?
A. A change in the actual rate of inflation B. A change in the actual level of real growth C. A change in the expected level of real growth D. A change in the expected rate of inflation