In Econland population and average labor productivity are constant. If a larger proportion of the population enters retirement, then total output will ________ and output per person will ________.
A. decrease; decrease
B. remain constant; remain constant
C. increase; increase
D. decrease; remain constant
Answer: A
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Recall the Application. According to the authors, what explained virtually all of the employment gains that occurred nationally?
A) a strong economy B) a weak economy C) increases in unemployment benefits D) decreases in unemployment benefits
Under the classical model, workers and resources remain fully employed at the natural rate of real output following an aggregate demand change because ______.
a. downward wages and prices are sticky b. inflationary gaps boost the potential output c. prices, wages, and interest rates all adjust quickly d. the economy quickly moves beyond its potential output
Since the National Basketball Association is the only significant employer of professional basketball players, it might be referred to as a(n)
A. oligopsony. B. monopsony. C. oligopolist. D. monopoly.
There is a trade-off between:
A. Saving and investment B. Current production and future consumption C. Current consumption and future consumption D. Consumption and spending