During an above-full-employment equilibrium, actual GDP is greater than potential GDP
Indicate whether the statement is true or false
TRUE
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Aggregate supply is
A) the horizontal summation of all supply curves for services. B) the sum of all planned production in the economy. C) the stock of all goods in the economy. D) the summation of all product supply curves.
Tying salaries of top managers to the profits of the firm is a way to reduce the effect of the principal-agent problem
Indicate whether the statement is true or false
If you have a bond that pays a lump sum at the time of maturity, it is
A) called a zero-coupon bond. B) worth more than a bond with coupon payments. C) riskier than a bond with coupon payments. D) a safer investment than a perpetuity.
One factor which did not influence the levels of real output and employment in the classical system was the
a. stock of capital. b. level of technology. c. the price level. d. size of the labor force.