Aggregate supply is defined as
A. how much the economy can produce at zero unemployment.
B. an amount of output the economy will produce at full employment.
C. the relationship between the expenditures schedule and the leakages schedule.
D. the relationship between the price level and the quantity of real GDP supplied.
Answer: D
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Once economists take into consideration changes in the expected inflation rate and supply shocks, the Phillips curve
A) only remains useful when explaining the long-run trade-off between unemployment and inflation. B) remains a useful tool for explaining the short-run trade-off between unemployment and inflation. C) is no longer a useful tool for explaining any trade-off between unemployment and inflation. D) accurately explains the short-run and long-run trade-offs between unemployment and inflation.
The country of Zorabia witnesses a huge influx of unskilled illegal immigrants. Which of the following will occur?
a. The equilibrium wage rate in Zorabia will fall. b. The equilibrium wage rate in the market for unskilled labor in Zorabia will fall. c. There will be excess demand for labor in the market for unskilled labor in Zorabia. d. There will be excess supply of labor in the job market for skilled workers.
Which of the following statements is true about empty cores?
a. It is individually rational to form coalitions when cores are empty. b. There are no unblockable payoff allocations. c. The only way to prevent blocking is side payments among coalition members. d. Empty cores leave each person with payoff just equal to their production values.
Refer to the table shown. In trillions of dollarsConsumption4.2Investment1.3Government Purchases1.5Depreciation0.4GDP6.6What are the economy's net exports?
A. $0.8 trillion B. There is not sufficient information to compute net exports. C. -$0.4 trillion D. $0.4 trillion