A Keynesian short-run aggregate supply curve has a flatter portion and a steep portion. How does a decrease in aggregate demand affect the actual real GDP differently across these two portions?
a. There is a large decrease in the actual real GDP across the flatter portion and a small decrease in the actual real GDP across the steep portion.
b. There is a large increase in the actual real GDP across the flatter portion and a small increase in the actual real GDP across the steep portion.
c. There is a small decrease in the actual real GDP across the flatter portion and a large increase in the actual real GDP across the steep portion.
d. There is a small increase in the actual real GDP across the flatter portion and a large increase in the actual real GDP across the steep portion.
a. There is a large decrease in the actual real GDP across the flatter portion and a small decrease in the actual real GDP across the steep portion.
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Which of the following pairs of goods are NOT complements?
A) Hockey sticks and hockey pucks B) Computer CPUs and computer monitors C) On-campus student housing and off-campus rental apartments D) all of the above E) none of the above
A firm produces 500 units per week. It hires 20 full-time workers (40 hours/week) at an hourly wage of $15 . Raw materials are ordered weekly and they costs $10 for every unit produced. The weekly cost of the rent payment for the factory is $2,250 . How do the overall costs breakdown?
a. total variable cost is $17,000 . total fixed cost is $2,250; total cost is $19,250 b. total variable cost is $5,000 . total fixed cost is $2,250; total cost is $7,250 c. total variable cost is $5,000 . total fixed cost is $14,250; total cost is $19.250 d. total variable cost is $12,000 . total fixed cost is $7,250; total cost is $19,250
The main idea behind supply-side tax cuts is that
a. tax cuts increase spending, which increases aggregate supply. b. some tax cuts can increase aggregate supply. c. people like lower taxes and will spend more if they get them. d. it is easier to shift aggregate supply than aggregate demand.
Answer the following statement(s) true (T) or false (F)
1. Trans-boundary pollution linked to electricity generation can be modeled as an international externality whereby the MSB is lower than the MEB of electricity. 2. The Montreal Protocol and its amendments address the phase out of those chemicals primarily responsible for climate change. 3. Chlorofluorocarbons (CFCs) are a group of chemicals believed to contribute to depletion of the ozone layer. 4. The United States ratified the Kyoto Protocol in 2001 during the Bush administration. 5. The flexible mechanisms relevant to the Kyoto Protocol include a system of tradable allowances for greenhouse gases.