The adjustment back to a long-run equilibrium after a sudden decrease in aggregate demand:
A. happens very quickly, leading to a temporary decrease in the unemployment rate.
B. happens very quickly, leading to a temporary increase in the unemployment rate.
C. takes a long time, during which the economy is growing very rapidly and very few people are unemployed.
D. takes a long time, during which the economy is not growing much and many people are unemployed.
Ans: D. takes a long time, during which the economy is not growing much and many people are unemployed.
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A) stockholders B) managers C) the state where the corporation is chartered D) employees
The equation MRS = 1 + r means that ________
A) consumers prefer to avoid fluctuations in consumption B) at the margin, consumption grows at the real interest rate C) any movement along the budget constraint would cause a decrease in the consumer's utility D) consumer utility is a positive function of the real interest rate
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A. Poor people generally receive Social Security benefits. B. Medicaid is an "in-kind" benefit paid to poor people. C. Nearly all of the poor receive public assistance. D. None of these statements are true.
Contractionary monetary policy involves actions that:
A. reduce the money supply in order to increase aggregate demand. B. increase the money supply in order to increase aggregate demand. C. reduce the money supply in order to decrease aggregate demand. D. increase the money supply in order to decrease aggregate demand.