Suppose the aggregate production function is represented by Y = AN. Which of the following expressions represents the number of additional workers required to increase production by one unit?
A) 1/A
B) Y/N
C) 1/N
D) 1/Y
E) none of the above
A
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The market demand is the ________ of the individual demand of all the potential buyers
A) square of the sum B) sum C) product D) square root of the sum
If the public believes the commitment to a nominal anchor to be credible, the effect of a negative aggregate demand shock is for ________
A) short-run aggregate supply to shift up B) short-run aggregate supply to be unaffected C) short-run aggregate supply to shift down D) inflation, but not economic activity, to decrease
Those who favor an active approach to policy and those who favor a passive approach disagree not only on how quickly the government can act but also on how stable the economy basically is
a. True b. False Indicate whether the statement is true or false
Suppose the price of A increases by 10 percent while the quantity demanded of B does NOT change. We would conclude that
A) the two goods are substitutes, but the cross elasticity of demand is not large. B) the two goods are complements, but the cross elasticity of demand is not large. C) the two goods are perfect substitutes. D) the two goods are not related.