The basic RBC model produces ________ movements in the real wage, which in fact are ________ in the statistical evidence
A) countercyclical, found
B) countercyclical, not found
C) procyclical, found
D) procyclical, not found
D
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Consider two goods--one that generates external costs and another that generates external benefits. The actual market outcome would
a. result in output that is lower than the efficient output for both goods. b. result in output that is higher than the efficient output for both goods. c. result in output that is lower than the efficient output for the good with an external benefit and output that is higher than the efficient output for the good with an external cost. d. result in output that is higher than the efficient output for the good with an external benefit and output that is lower than the efficient output for the good with an external cost.
When the current account balance is ______ and the financial account balance is ______, then the statistical discrepancy will be $100 billion.
a. $300 billion; $400 billion b. negative $300 billion; $300 billion c. $400 billion; negative $300 billion d. negative $400 billion; $300 billion
The ________ is the additional revenue a firm earns by employing one additional unit of labor.
A. marginal labor cost B. per-worker net profit C. average labor revenue D. marginal revenue product of labor
Answer the following question on the basis of the data given for two regions, East and West, of a hypothetical world. The nations have the production possibilities for units of food and clothing given below.
Refer to the data above. The mutually beneficial terms of trade will be:
A. Greater than 4 units of food for 1 unit of clothing
B. Between 4 and 5 units of food for 1 unit of clothing
C. Between 2 and 3 units of food for 1 unit of clothing
D. Less than 2 units of food for 1 unit of clothing