If prices of goods and services are free to quickly adjust, then:
A.
A negative demand shock would lead to increased unemployment in the short run
B.
A positive demand shock would lead to increased unemployment in the short run
C.
A negative demand shock would have no short-run effect on unemployment
D.
There would be no short-run demand shocks
C.
A negative demand shock would have no short-run effect on unemployment
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The view that changes in the money supply is the primary cause of changes in real output and the price level is most closely associated with
A. the monetarist view. B. mainstream economics. C. real business cycle theory. D. rational expectations theory.
The MRS of the indifference curves in the above figure
A) equals 1/2. B) equals 2. C) changes when moving along any one of the curves. D) is constant along a particular indifference curve, but changes from one indifference curve to the next.
Ida May Fuller was the first person to:
A. receive Social Security payments for over 20 years. B. petition Congress for indexing Social Security payments. C. receive a Social Security check. D. have her Social Security check adjusted for inflation.
Suppose a recession surprises economic forecasters who did not see it coming. This is an example of a _____
a. cyclical lag b. recognition lag c. decision-making lag d. implementation lag e. effectiveness lag