Fundamentally, fiscal policy deals with which of the following?
A. changes in the federal budget
B. changes in M1
C. changes in interest rates
Answer: A. changes in the federal budget
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Short-run equilibrium output is the level of output at which real GDP
A. equals real GDP per capita. B. equals potential output. C. maximizes firm profits. D. equals aggregate expenditure.
Refer to Figure 12-8. Suppose the firm produces 4,000 units. What does the shaded area labeled B represent?
A) the firm's economic loss B) average variable cost C) total fixed cost D) total variable cost
By convention, there are two major divisions of economics, called:
A. microeconomics and macroeconomics. B. rational economics and irrational economics. C. reservation price and opportunity cost. D. marginal benefit and marginal cost.
A reduction in the unemployment rate will tend to cause which of the following?
A) an increase in the separation rate B) a reduction in the nominal wage C) a reduction in the duration that one is unemployed D) none of the above