Refer to Figure 34-7. If the economy is at point b, a policy to restore full employment would be
a. an increase in the money supply.
b. a decrease in government purchases.
c. an increase in taxes.
d. All of the above are correct.
Ans: a. an increase in the money supply.
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In a competitive constant-cost industry, an increase in consumer demand leads to
a. a decrease in output b. high interest rates c. an increase in output d. inflation e. a decrease in resource employment
In a price-taker market, the short-run market supply curve is the
a. vertical sum of the marginal cost curves of all firms in the market. b. vertical sum of the average variable cost curves of all firms. c. horizontal sum of the marginal cost curves of all firms so long as price exceeds average variable cost. d. horizontal sum of the average total cost curves of all the firms in the market so long as average total cost exceeds the market price.
An increase in the supply of a good will cause
a. a decrease in equilibrium price and an increase in equilibrium quantity. b. an increase in equilibrium price and quantity. c. an increase in equilibrium price and a decrease in equilibrium quantity. d. a decrease in equilibrium price and quantity.
The table that summarizes the percent of the unemployed who have been unemployed for different lengths of time is called:
A. the duration of unemployment. B. the labor force participation rate. C. structural unemployment D. natural rate of unemployment.