If technology improves when a nation is in the intermediate range and only the Aggregate Supply changes, then:
a. Real GDP rises and average price level rises.
b. Real GDP rises and average price level falls.
c. Real GDP rises and real GDP remains the same.
d. Real GDP remains the same and average price level falls.
e. Real GDP remains the same and average price level rises.
.B
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In the monetary small open-economy model with a fixed exchange rate, an increase in the domestic price level has which impact on domestic money demand?
A) It increases it. B) It decreases it. C) It has no impact. D) It depends.
According to Keynesian theory, the profit-maximizing firm demands labor up to the point at which
a. the real wage is equal to the marginal productivity of labor. b. the money wage paid to labor is just equal to the money value of the marginal product of labor. c. labor and capital costs are equal. d. a and/or b are correct.
Continuing resolutions are: a. budget agreements that allow agencies, in the absence of an approved budget, to spend at the rate of the previous year's budget. b. guaranteed benefits for those who qualify for government transfer programs such asSocial Security and Medicare
c. agreements about total outlays, spending by major category, and expected revenues of the federal government. d. budget resolutions that allow the federal government to allocate a fixed proportion of yearly outlays toward military related expenditures. e. legislative actions undertaken to balance the budget.
In a country with a working-age population of 30 million, 18 million are employed, 2 million are unemployed and 2 million of the employed are working part-time, half of whom wish to work full-time. The labour force participation rate is
A) 60 percent. B) 66.7 percent. C) 53.3 percent. D) 73.3 percent E) none of the above.