In the extended classical model, an anticipated decrease in the money supply would cause output to ________ and the price level to ________ in the short run
A) increase; decrease
B) increase; remain unchanged
C) remain unchanged; increase
D) remain unchanged; decrease
D
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Macroeconomic topics include
A) total, nationwide employment. B) studying what factors influence the price and quantity of automobiles. C) studying the determination of wages and production costs in the software industry. D) the impact of government regulation of markets.
If a labor market that was previously competitive becomes controlled by a monopsony, the wage rate ________ and employment ________
A) rises; increases B) falls; decreases C) rises; decreases D) falls; increase
In the long run, both monopolistic competition and perfect competition result in:
a. a wide variety of brand-name choices for consumers. b. an efficient allocation of resources. c. zero economic profit for firms. d. excess capacity.
Say Anna's utility function was given by UA = (MA) (MM), where MA is Anna's wealth and MM is Marie's wealth. Initially, Anna has 160 units of wealth and Marie has 40. In order to maximize her utility Anna should
A. transfer all her wealth to Marie. B. keep all her wealth for herself. C. get 40 units from Marie. D. transfer 60 units to Marie.