In the Keynesian model, an aggregate demand shock
A) will cause the aggregate demand curve to shift, leading to a change in the price level and real GDP.
B) will cause the aggregate demand curve to shift, leading to a change in the price level but not real GDP.
C) will cause the aggregate demand curve to shift, leading to a change in real GDP but not the price level.
D) will not lead to a shift of the aggregate demand curve.
A
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A firm wishes to shut down an office and fire 100 employees. The company will save $3000 per month per employee. It is estimated that each employee contributes $4,100 to the company. The firm rents office space for this group of employees at $1500 . What should the company do?
a. Fire the employees and save $1500 on rent b. Not fire the employees keeping them generates a profit of $1100 per employee c. Not fire the employees since keeping them generates a profit of $1085 per employee d. None of the above
Assuming government wishes to either increase or decrease the level of aggregate demand, which of the following pairs are not consistent policy measures?
A. A tax increase and an increase in the money supply. B. A tax reduction and an increase in the money supply. C. A reduction in government expenditures and a decline in the money supply. D. A tax increase and an increase in the interest rate.
An income statement shows a firm's revenue, costs, and profit
A) for the firm's fiscal year. B) since the firm has been in operation. C) for a particular day. D) only if the firm is earning an accounting profit.
What do antitrust laws enable the government to do?
a. Break up large firms into smaller ones b. Acquire a controlling percentage of large firms c. Require firms to sell off profitable operations d. Block all mergers and acquisitions by foreign firms