Answer the following statements true (T) or false (F)
1) The interest-rate effect is one of the determinants of aggregate demand.
2) The real-balances effect indicates that inflation makes the public feel wealthier and they
therefore spend more out of their current incomes.
3) Other things equal, an increase in productivity will shift the short-run aggregate supply curve rightward.
4) In the immediate short run, both input and output prices are fixed.
5) An increase in wealth from a substantial increase in stock prices will move the economy along a fixed aggregate demand curve.
1) F
2) F
3) T
4) T
5) F
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Based on the production and revenue data in the above table, if the wage rate is $35 per worker, how many workers will be hired?
A) 5 B) 4 C) 3 D) 2
Which of the following accurately describes possible positions taken by hedgers?
A) may take a short position in the futures market to offset a long position in the spot market B) may take a short position in the spot market to offset a long position in the futures market C) may take a long position in the spot market to offset a short position in the futures market D) may take a long position in the futures market to offset a long position in the spot market
A major tax overhaul is more likely to be in the public interest that a small tax reform
a. True b. False
If a sizeable amount of U.S. currency is held outside of the United States,
a. the accuracy of the M2 money supply figures will be improved, but there will be no impact on M1. b. the accuracy of the M1 money supply figures will be improved, but there will be no impact on M2. c. the money supply figures, particularly those for M1, will be less reliable. d. the money supply figures of the U.S. will not be affected because the funds are held outside the U.S.