Beginning from full-employment macro equilibrium, increase in government spending will cause real GDP to:
a. increase in the short run.
b. decline in the long run
c. decline in the short run.
d. increase in the long run.
a
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In the figure above, the Lorenz curve that shows the richest 20 of households percent receiving 60 percent of all income is
A) curve A. B) curve B. C) curve C. D) curve D.
Using Figure 1 above, if the aggregate demand curve shifts from AD3 to AD2 the result in the long run would be:
A. P1 and Y2. B. P2 and Y1. C. P3 and Y1. D. P3 and Y2.
A reduction in unemployment benefits will tend to cause which of the following?
A) an upward shift in the WS curve B) a downward shift in the WS curve C) an upward shift in the PS curve D) a downward shift in the PS curve E) none of the above
Both Claudia and Javier are certified educators. Claudia makes $55,000 a year working as a teacher in a public high school in Chicago. Javier makes $40,000 working as a grade school teacher in a private school in Chicago. Which of the following is true?
A. Javier is clearly worse off than Claudia, because he earns $15,000 a year less. B. Javier must be better off than Claudia if he is willing to take a job at $15,000 a year less than Claudia. C. Even though income is an imperfect measure of well-being, Claudia and Javier must be equally well off because either is free to switch jobs. D. From this information it cannot be determined who is better off because income is an imperfect measure of well-being.