The economy is in its short run equilibrium at the point where the
A) price level is stable.
B) SAS curve intersects the LAS curve.
C) AD curve intersects the LAS curve.
D) AD curve intersects the SAS curve.
D
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Which of the following is most likely to reduce the rate of economic growth?
A) investment in human capital B) a high domestic saving rate C) subsidies for R&D activities D) slow technological progress
Which of the following questions can be answered using the concepts of macroeconomics?
A) What is the effect of an increase in price on the supply of a good? B) Why do some firms produce differentiated goods? C) What is the difference between a public good and a private good? D) Why does the rate of economic growth fluctuate from year to year?
Which one of the following transactions in a particular year is included in gross domestic product for that year?
A) Social Security payments to retirees B) The government pays a computer services company that assisted in the delivery of Social Security payments to retirees. C) A car is produced in the previous year and remains in inventory for the entire year under consideration. D) A stay-at-home parent performs housework that the family would otherwise have paid a maid $20,000 a year to perform.
Refer to Scenario 7.7 below to answer the question(s) that follow. SCENARIO 7.7: A lawn service company has the following production possibilities. With one, two, three, and four workers, the company can mow 4, 9, 12, and 14 lawns per day, respectively. Refer to Scenario 7.7. The average product of labor with three workers is
A. 3. B. 3.5. C. 4. D. 12.