Theories of economic business cycles have evolved to a point of agreement: they are caused internally by interaction between an economy's multiplier and accelerator
Indicate whether the statement is true or false
F
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In the Keynesian cross diagram, a decrease in investment spending because companies become more pessimistic about investment profitability causes the aggregate demand function to shift down, the equilibrium level of aggregate output to ________, and
the IS curve to shift to the ________, everything else held constant. A) rise; left B) rise; right C) fall; left D) fall; right
Which event was most important in promoting the belief that the U.S. government should work to ensure economy-wide stability?
A) World War II B) the Civil Rights Movement C) the California Gold Rush D) the Great Depression
Suppose the MRP of the 49th worker at a firm is $25 and that the market wage rate is $15. We know that if this firm operates in perfectly competitive product and labor markets
A) the firm is paying wages above the minimum wages. B) the firm's profits would increase if it fired some workers. C) the firm would be more profitable if it hired more workers. D) the firm should use more capital.
An increase in the wage rate will cause
a. increased employment b. a leftward shift in the labor supply curve c. an upward movement along the labor supply curve d. a rightward shift of the labor supply curve e. a leftward shift of the labor demand curve