Which of the following is a normative macroeconomic statement?
a. An increase in government spending will reduce unemployment.
b. An active government policy should be employed to maintain a healthy economy.
c. The unemployment rate is 10 percent.
d. There is a positive relationship between inflation and the rate of growth of money
e. Gross domestic product grew 3 percent this year.
B
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In the specific factors model, a 0% increase in the price of food accompanied by a 5% increase in the price of cloth will cause wages to ________, the production of cloth to ________, and the production of food to ________
A) increase by less then 5%; increase; decrease B) increase by 5%; remain unchanged; remain unchanged C) increase by more then 5%; increase; remain unchanged D) remain constant; increase; increase E) remain constant; decrease; decrease
Which of the following would result in a short-run increase in the wage rate in a competitive labor market?
A. an increase in immigration B. a decrease in labor demand C. an increase in the output price D. a decrease in productivity E. an increase in native labor supply
In the old Chesapeake colonies, tobacco leaves were used to make payments and to pay fines and taxes. Which of the following problems would it be most likely to have had as a form commodity money?
a) Its value was not easy to determine. b) It was not durable. c) It was not divisible. d) It was not readily accepted by many people.
Other factors held constant, a decrease in resource prices will shift the aggregate:
A. demand curve leftward. B. demand curve rightward. C. supply curve leftward. D. supply curve rightward.