As capital per worker rises, output per worker rises. However, this increase in output per worker is smaller at smaller levels of existing capital per worker
a. True
b. False
Indicate whether the statement is true or false
False
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Using the Taylor rule, if the current inflation rate equals the target inflation rate and real GDP equals potential GDP, then the federal funds target rate equals the
A) current inflation rate plus the real equilibrium federal funds rate. B) real equilibrium federal funds rate. C) current inflation rate. D) current discount rate.
Many people perceive erroneously that most macroeconomists spend a lot of time engaged in
A) forecasting. B) macroeconomic research. C) macroeconomic analysis. D) data development.
If American college students decide that drinking Mexican-brewed beer helps one get noticed, net exports will tend to fall, causing aggregate demand to ________ and the ________ curve to shift to the left, everything else held constant
A) fall; LM B) fall; IS C) rise; LM D) rise; IS
A proportional tax is defined as a tax for which the
a. average tax rate rises as income increases. b. average tax rate falls as income increases. c. average tax rate remains constant at all levels of income. d. dollar tax liability of those with higher income is the same as the dollar tax liability of those with lower income.