If a country's working-age population increases and its wealth increases, then the labor supply curve
A) shifts to the left if the effect of the change in wealth is bigger than the effect of the change in the working-age population.
B) shifts to the right if the effect of the change in wealth is bigger than the effect of the change in the working-age population.
C) shifts to the left.
D) shifts to the right.
A
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A critical assumption for the simple money multiplier (1/ rrd) to hold is that
a. banks do not hold excess reserves. b. the public does not increase their level of currency holdings. c. the required reserve ratio has to be greater than one. d. both a and b. e. all of the above.
Refer to the above figure. Suppose that the supply curve shifts from SA to SB while the demand curve shifts from DA to DB. Which of the following is TRUE about the results of the shifts in the supply and demand curves?
A) The equilibrium price increases while the equilibrium quantity remains unchanged. B) Both the equilibrium price and equilibrium quantity increase. C) The equilibrium price remains unchanged while the equilibrium quantity increases. D) Both the equilibrium price and equilibrium quantity remain unchanged.
In macroeconomics, game theory focuses on the strategic interactions between which of the following groups of agents?
A) individuals; firms B) individuals and firms; policy makers C) policy makers; economic forecasters D) individuals and firms; economic forecasters
After some tornadoes in Alabama, unemployment is low as there is a great deal of construction work and businesses run at full capacity. This suggests that
A. the economy is operating below its long-run level and living standards are less than they would have been without the hurricane. B. living standards are falling as employment and economic activity are too high. C. the economy is operating above the full-employment level and will eventually adjust back to long-run aggregate supply. D. the hurricane is beneficial since it is increasing employment and replacing less efficient capital with newer and more efficient capital.