If the price of inputs rises and personal income taxes rise:
a. Aggregate demand rises and aggregate supply falls.
b. Aggregate demand rises, but aggregate supply does not change.
c. Aggregate demand falls and aggregate supply rises.
d. Aggregate demand rises and aggregate supply rises.
e. Aggregate demand falls and aggregate supply falls.
.E
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Which of the following is TRUE regarding the real wage rate? The real wage rate
I. is always greater than the money wage. II. measures the quantity of goods and services an hour's work can buy. A) only I B) only II C) both I and II D) neither I nor II
The Reagan administration's experiment with supply-side economics produced a historic period of economic expansion that was accompanied by:
a. falling real interest rates. b. high unemployment rates. c. a dramatic increase in the federal government's budget deficit. d. a reduction in the U.S. trade deficit. e. All of the above.
The ultimate purpose of building an economic model is to
a. challenge college students b. constrain economic agents c. predict behavior d. change behavior e. prevent behavior
If we assume that labor is the only variable input, the slope of the total product curve in the short run
A. measures the average product of labor. B. has no economic significance. C. measures the marginal product of labor. D. measures both the marginal and average product at all points on the total product curve.