Consumption spending is:
A. negatively related to the overall price level.
B. positively related to the overall price level.
C. equal to the overall price level.
D. not correlated with the overall price level.
A. negatively related to the overall price level.
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Looking at the supply-side effects on aggregate supply shows that a tax hike on labor income
A) decreases potential GDP. B) weakens the incentive to work. C) increases potential GDP because people work more to pay the higher taxes. D) Both answers A and B are correct. E) None of the above is correct.
Economists who believe in the quantity theory of money argue that:
A. the causation in the equation of exchange goes from MV to PQ. B. the causation in the equation of exchange goes from PQ to MV. C. the causation in the equation of exchange could go either way. D. there is no causation in the equation of exchange.
An example of a good that is excludable is:
A. broadcast television. B. an outdoor sculpture visible from the street. C. an aerial fireworks display. D. a television set.
A curve that shows the relationship between the wage and the quantity of labor demanded in the short run is:
A. the marginal revenue product of labor curve. B. the marginal revenue curve. C. the marginal product of labor curve. D. None of these