For a government, the appropriate Keynesian response to a recessionary gap is to increase government spending
a. True
b. False
Indicate whether the statement is true or false
True
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The aggregate supply curve
A) becomes vertical if there is excess production capacity within the economy. B) shows a negative relationship between the price level and real Gross Domestic Product (GDP). C) shows what each producer is willing and able to produce at each income level. D) relates planned aggregate production to price level.
Of the following high-income countries, which has the lowest infant mortality rate?
A) Canada B) Japan C) the United Kingdom D) the United States
For a perfectly competitive firm, profit maximization occurs when
A) marginal revenue equals average total cost. B) marginal revenue equals marginal cost. C) marginal cost is equal to average total cost. D) average total cost is at its minimum.
If the marginal revenue product of labor improves, which of the following shifts in the labor market should occur?
A. Demand for labor should shift to the right. B. Supply of labor should shift to the left. C. Demand for labor should shift to the left. D. Supply of labor should shift to the right.