Which statement is true?
A. The highest paid professional athletes earn economic rent.
B. Economic rent is paid on land, but not in the form of wages.
C. Economic rent is earned mainly by the poor and the lower middle class.
D. Economic rent is paid in proportion to the marginal revenue product of a resource.
A. The highest paid professional athletes earn economic rent.
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Interest rates in the economy have risen. How will this affect aggregate demand and equilibrium in the short run?
A) Aggregate demand will rise, the equilibrium price level will fall, and the equilibrium level of GDP will rise. B) Aggregate demand will rise, the equilibrium price level will rise, and the equilibrium level of GDP will rise. C) Aggregate demand will fall, the equilibrium price level will fall, and the equilibrium level of GDP will fall. D) Aggregate demand will fall, the equilibrium price level will rise, and the equilibrium level of GDP will fall.
Because of the large number of firms that operate in the agricultural industry, the supply of agricultural products is inelastic over the entire range of output
Indicate whether the statement is true or false
The consensus reached in the late 1990s was that from the 1980s onward the Fed had been
A) quicker to stimulate or restrain the economy when its output fell short of or exceeded its natural level. B) quicker to stimulate the economy when output fell short of the natural level, but slower to do so when output exceeded the natural level. C) slower to stimulate the economy when output fell short of the natural level, but quicker to do so when output exceeded its natural level. D) slower to stimulate or restrain the economy when its output fell short of or exceeded its natural level.
The Fed's actions influence real GDP by changing expenditure plans. Other things remaining the same the lower the real interest rate, the ________ is the amount of consumption expenditure and the _______ is the amount of saving.
Fill in the blank(s) with the appropriate word(s).