Employment tends to rise when
A. labor productivity falls.
B. aggregate output rises.
C. unemployment rises.
D. aggregate output falls.
Answer: B
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Which of the following is a reason for the success that firms have in getting the government to erect barriers to foreign competition?
A) The costs from free trade are greater than the benefits. B) The jobs lost to foreign competition are easy to identify but jobs created by foreign trade are often hard to identify. C) People who benefit from foreign trade tend not to vote in elections; people who are harmed by foreign trade are much more likely to vote. D) Firms that are harmed by trade barriers have less money to lobby government officials to eliminate the barriers than do firms that benefit from trade barriers.
A nominal variable, such as the inflation rate or the money supply, which ties down the price level to achieve price stability is called ________ anchor
A) a nominal B) a real C) an operating D) an intermediate
In words, the equation of exchange says that
A) the total amount spent on final output equals the amount received for final output. B) the amount of money in circulation equals the velocity of the price level. C) changes in the money supply will have no impact on the amount spent on final output. D) when velocity equals 1, nominal GDP equals the price level.
Which of the following is NOT an assumption used in deriving a production possibilities curve?
A. The quantity of resources is constant. B. Resources are fully employed. C. The labor force is growing at a constant rate. D. Technology is constant.