Macroeconomists study
a. the decisions of individual households and firms.
b. the interaction between households and firms.
c. economy-wide phenomena.
d. regulations imposed on firms and unions.
c
You might also like to view...
A positive externality exists and government wants to apply a per-unit subsidy in order to bring about an efficient outcome. Under what condition will the solution (the subsidy) be worse than the problem (the market failure)?
A. Under the condition that the subsidy is greater than the marginal external benefit (associated with the positive externality). B. Under the condition that the post-subsidy output is not farther away from the efficient level of output than the pre-subsidy output is from the efficient level of output. C. Under the condition that the post-subsidy output is farther away from the efficient level of output than the pre-subsidy output is from the efficient level of output. D. Under the condition that the subsidy is less than the marginal external benefit (associated with the positive externality). E. none of the above
The income elasticity of demand
A) is positive only. B) is negative only. C) must lie between -1 and +1. D) can be positive, negative, or zero.
What does NOT occur in a fully employed economy?
A. Cyclical unemployment B. Discouraged workers C. Frictional unemployment D. Structural unemployment
What is the best explanation for the slope of the Keynesian zone of the aggregate supply curve?
A. an increase in aggregate demand causes both real output and the price level to increase. B. an increase in aggregate demand when the economy is operating below potential output causes real output to grow, with little or no effect on the price level. C. an increase in aggregate demand when the economy is operating at potential output causes the price level to rise, with little or no effect on real output.