The aggregate expenditure model focuses on the short-run relationship between ________ and ________
A) unemployment; inflation B) planned inventories; unplanned inventories
C) real spending; real GDP D) nominal spending; nominal GDP
C
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The domestic real interest rate (r) for a given country must be the same as the world real interest rate (rw) ________
A) if perfect capital mobility is assumed B) because with no barriers to capital flows, if rw > r domestic residents would just borrow abroad putting upward pressures on the domestic rate until both rates equal each other C) because with no barriers to capital flows, if rw < r domestic residents would only lend to foreigners putting downward pressures on the domestic rate until both rates equal each other D) all of the above E) none of the above
______ creates inefficiency in a labor market by preventing firms from hiring employees whose marginal revenue product is above the market wage
a. Efficiency wage b. Labor union c. Labor shortage d. Discrimination
When there is an excess quantity supplied in the market
A) the price of the product will increase, causing a decrease in demand and an increase in supply. B) the price of the product will increase, causing a decrease in quantity demanded and an increase in supply. C) the price of the product will decrease, causing an increase in quantity demanded and a decrease in quantity supplied. D) the price will increase, causing a decrease in demand and an increase in quantity supplied.
Which question is an example of a macroeconomic question?
A. What economic incentives can be used to reduce the cost of health care in the nation? B. What is the level of industrial concentration in the US automobile industry? C. What market conditions are expected for milk in the nation this year? D. What policies would be recommended for stimulating national economic growth?