In a closed economy, national savings will be:
A. lower than private savings if the government runs a deficit.
B. higher than private savings if the government runs a deficit.
C. lower than private savings if the government runs a surplus.
D. equal to private savings if the government runs a deficit.
A. lower than private savings if the government runs a deficit.
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Suppose you solve the profit maximization problem for a single-input, price-taking producer whose technology is given by src="https://sciemce.com/media/3/ppg__cognero__Chapter_11_One_Input_and_One_Output_A_Short_Run_Producer_Model__media__59179cfd-ca3e-489f-aabb-5a92da40ce1d.PNG" style="vertical-align: -13px;" width="79px" height="38px" align="absmiddle" /> Might 
The labor demand function is 
a. Suppose 
in fact be the correct labor demand function? Explain.
b. Suppose 
Might 
in fact be the correct labor demand function? Explain.
c. Intuitively explain how (b) might arise from the profit maximization problem.
What will be an ideal response?
If two events are perfectly positively correlated, then
A) diversification is not necessary since there is no risk. B) diversification eliminates all risk. C) diversification does not reduce risk at all. D) diversification only cuts the risk in half.
Which of the following situations would cause a period of stagflation at a later point in time?
A. A recessionary gap B. A reduction in investment spending C. An increase in technological development D. An inflationary gap
When the price level rises as a result of a decrease in aggregate supply, it is called cost-push inflation
a. True b. False Indicate whether the statement is true or false