Suppose total factor productivity increases. Which of the following is incorrect?
A) Households are better off.
B) Consumption goes up.
C) The real wage goes down.
D) Output goes up.
C
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The figure above shows the costs and benefits associated with producing paper. What is the marginal external cost when output is 6 tons?
A) $1,600 B) $1,200 C) $1,000 D) $600 E) $400
When producers agree to restrict output, raise the price, and increase profits, the agreement is called ________
A) a pricing agreement B) an oligopoly agreement C) a collusive agreement D) a monopoly agreement
How is the Solow residual measured? What problems arise in its measurement when resource utilization varies over the business cycle? What implications do these measurement issues have for evidence supporting the RBC model?
What will be an ideal response?
According to the Keynesian model, the economy will be in equilibrium when
a. the growth of the money supply is constant over time. b. planned leakages equal planned injections. c. the government’s budget is balanced. d. the labor force is fully employed.