Say's Law
a. cannot be satisfied if there is excess supply or demand in individual markets in the long run
b. ensures that every firm will sell all of its output
c. can be satisfied even if there is a general overproduction or underproduction of goods in the economy
d. is satisfied only if every market clears in the short run
e. shows that the total value of spending in the economy will equal the total value of the output produced
E
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A report indicated that the average real wage in manufacturing declined by 2% between 1990 and 2000. If the CPI equaled 1.30 in 1990, 1.69 in 2000, and the average nominal wage in manufacturing was $35 in 2000, what was the average nominal wage in manufacturing in 1990?
A. $27.47 B. $26.92 C. $21.13 D. $26.40
Buyers who are persuaded to take a product home to try it out, _____
a. are likely to return the product later b. are lucky the seller is not concerned about the buyers' credit ratings c. will not derive any utility from that product. d. have no money to pay at the time e. will be reluctant to return the product when payment is due
The steeper the slope of the aggregate supply curve in the long run indicates that an increase in aggregate demand will cause an increase in the price level and an even greater increase in output in the long run
a. True b. False Indicate whether the statement is true or false
Spending VCU4 on real-world goods and services causes the nation's:
a. Demand for real goods and services to rise and monetary base to remain the same. b. Demand for real goods and services to rise and M2 money supply to fall. c. Demand for real goods and services to remain the same and M2 money multiplier to remain the same. d. Demand for real goods and services to rise and M2 money supply to fall.