In the above figure, the economy is currently at point A. Suppose that the money wage rate and the price level both fall by 10 percent. Firms will be willing to supply output equal to
A) less than $16.0 trillion.
B) $16.0 trillion.
C) more than $16.0 trillion.
D) Without more information, it is impossible to determine which of the above answers is correct.
B
You might also like to view...
As the housing bubble collapsed, as more foreclosures occurred, and the supply of homes for sale:
A. increased, it further decreased home values, which led to more foreclosures. B. increased, the price of homes fell, and so the demand for homes increased. C. decreased, as homeowners no longer wanted to sell their homes when prices were low. D. decreased, as homeowners refused to sell when they owed more than the market value.
Which of the following statements about the economic concept of land is not true?
a. Land includes forests, minerals, and other natural resources. b. Countries that are rich in natural resources are not always successful in exploiting these resources to produce goods and services. c. Land can be combined with labor and capital to produce goods and services. d. Abundant natural resources are necessary for economic growth. e. Countries that lack natural resources need not be characterized by limited economic growth.
Suppose a bank has $200,000 in deposits, a required reserve ratio of 15 percent, and total reserves of $100,000. Then it has excess reserves of
A. $30,000. B. Negative $100,000. C. $200,000. D. $70,000.
Classical economists who allow for shocks other than productivity shocks to affect the economy use ________ models rather than RBC models
A) Keynesian B) monetarist C) nonlinear D) DSGE