In the IS model, assuming that the real interest rate does not change, an increase in autonomous net exports causes total investment, planned plus unplanned, to ________
A) fall, then rise back to its initial level
B) fall, then rise above its initial level
C) rise, then fall back to its initial level
D) all of the above
E) none of the above
A
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Assuming that as a result of observed past increases in the aggregate price level, workers' expectation of the current price level rises. Then,
a. less labor will be supplied at each money wage because with the higher expectation about the aggregate price level since a given money wage corresponds to a lower real wage. b. the firm has to pay a higher money wage in order to obtain a given quantity of labor. c. more labor will be supplied at each money wage because with the higher expectation about the aggregate price level since a given money wage corresponds to a higher real wage. d. Both a and b e. Both b and c
Wal-Mart was one of the most successful firms of the 1970s and 1980s. Much of Wal-Mart's success can be credited to its expansion strategy: they rushed to open the first discount store in small towns that could only support one discount store. In the language of game theory:
A) Wal-Mart was a dominant firm. B) Wal-Mart made empty threats. C) Wal-Mart employed a maximin strategy. D) Wal-Mart employed a preemptive strategy.
The other name for the National Labor Relations Act of 1935 is
A) the Wagner Act. B) the Taft-Hartley Act. C) the Clayton Act. D) the Wheeler-Lea Act.
Suppose two variables are directly related. If one variable rises, then the other variable:
A. also rises. B. falls. C. remains unchanged. D. reacts unpredictably.