Questions that address what did, will or would actually happen are called ________ questions.
A. normative
B. positive
C. efficiency
D. equity
B. positive
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Suppose a person's utility for leisure (L) and consumption (Y) can be expressed as U = Y + L0.5. Assuming a wage rate of $10 per hour, show what happens to the person's labor supply curve when the person wins a lottery prize of $100 per day
What will be an ideal response?
?Exhibit 10A-1 Aggregate demand and supply model
?Beginning from short-run equilibrium at point E2 in Exhibit 10A-1, the economy's movement to a new position of long-run equilibrium would best be described as:
A. ?a movement along the AD2 curve with a shift in the SRAS1 curve. B. ?a movement along the SRAS2 curve with a shift in the AD2 curve. C. ? a shift in the LRAS curve to an intersection at E1. D. ?no shift of any kind.
QE2 was an effort to revive the economy in 2010 and 2011. It relied on
A. new tools of monetary policy. B. discretionary fiscal policy. C. the traditional tools of monetary policy. D. all of the options are correct.
Monopolistically competitive industries are characterized by all of the following except
A. Low concentration ratios. B. Independent production decisions. C. Homogeneous products. D. Low entry barriers.