The Phillips curve is an extension of the model of aggregate supply and aggregate demand because, in the short run, an increase in aggregate demand increases prices and decreases unemployment.
Answer the following statement true (T) or false (F)
True
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The labor force participation rate is the percentage of the adult population that is
A) employed. B) willing to work but unable to find jobs. C) unemployed. D) working or actively looking for work.
Matt is offered a job driving the campus shuttle bus from 4 p.m. to 6 p.m. each Monday. His reservation wage for this job is $7 per hour. If the campus transportation director offers Matt $50 per hour, how much economic surplus will Matt enjoy as a result of accepting the job?
A. $50 per hour B. $36 per hour C. $43 per hour D. $86 per hour
Where do economic agents such as individuals, firms, and nations interact with each other?
A) in public locations monitored by the government B) in any arena that brings together buyers and sellers C) in any physical location where people can physically get together for selling goods, such as shopping malls D) in any location where transactions can be monitored by consumer groups and taxed by the government
As the economy contracts, tax revenues
A. rise and transfer payments rise, causing the economy to contract by more than it would in the absence of automatic stabilizers. B. rise and transfer payments fall, causing the economy to contract by less than it would in the absence of automatic stabilizers. C. fall and transfer payments fall, causing the economy to contract by more than it would in the absence of automatic stabilizers. D. fall and transfer payments rise, causing the economy to contract by less than it would in the absence of automatic stabilizers.