The equilibrium price of automobiles is a primarily macroeconomic issue
a. True
b. False
B
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In monopolistic competition, product improvement and development
A) are valued by the consumer at an amount equal to the costs the producers have incurred. B) yields a marginal benefit to the producer equal to price of the good. C) is less than its efficient amount. D) None of the above answers are correct.
The money demand curve will shift to the left if real GDP ________ or if the price level ________
A) increases; increases B) increases; decreases C) decreases; increases D) decreases; decreases
In 2001, the percent of total employment in the manufacturing, mining, and construction sector equaled
a. less than 20 percent. b. 30 percent. c. 40 percent. d. 60 percent.
What is the main difference in the classical model as compared to the short-run macro model?
a. In the classical model the economy automatically operates at potential GDP while in the short run model the economy can operate at a different level of GDP b. In the short run model the economy automatically operates at potential GDP while in the classical model the economy can operate at a different level of GDP c. Fiscal policy has no effect in the short run model but is very effective in the classical model d. There is no difference in the predictions of the two models e. The classical model does a better job in predicting recessions than the short-run macro model