If a shift in SRAS results from gains in productivity growth, which are typically measured in terms of a few percentage points per year, the effect will be:
a. relatively small over a few months or even a couple of years.
b. relatively large over a few months or even a couple of years.
c. relatively small over a few months but larger over a couple of years.
d. relatively large over a few months but smaller over a couple of years.
a. relatively small over a few months or even a couple of years.
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Answer the following statement(s) true (T) or false (F)
1. If a model is based on unrealistic assumptions, then it cannot be robust. 2. Equilibrium conditions are used to analyze the desirability of economic outcomes. 3. A Nash equilibrium is one in which each individual optimizes taking market prices as given. 4. Efficiency is one common criterion that economists use to judge whether or not an outcome is desirable. 5. Even if an economic model is not detailed enough to give numerical predictions, it might still be useful if it can indicate the direction of change in economic variables.
If a seller lowers the price of a product when demand is price inelastic, the seller can expect revenues to
A) rise. B) fall. C) stay the same. D) either rise or fall, but it is impossible to determine which.
The net exports effect exists because a:
a. higher price level will reduce interest rates and stimulate foreign investment. b. lower price level will make domestically produced exports less expensive relative to foreign goods. c. higher price level will reduce the purchasing power of money. d. lower price level will encourage Americans to import more foreign goods.
If you go to Europe to work and send funds home to your family living in the United States, this is known as a
A. service import. B. merchandise import. C. unilateral transfer. D. service export.