The basic aggregate demand and aggregate supply curve model helps explain
A) short-term fluctuations in real GDP and the price level.
B) long-term growth.
C) price fluctuations in an individual market.
D) output fluctuations in an individual market.
Answer: A
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Which of the following can lead to permanent differentials in resource prices?
a. an increase in demand for a product produced by the resource b. differences in the inherent quality of resources c. differences in the time and money involved in developing necessary skills d. differences in the nonmonetary rewards of a job e. a lack of resource mobility
The poverty rate is the percentage of the population whose family income falls below an absolute level called the
When there is an inflationary gap, (actual) Real GDP is __________ Natural Real GDP, and the (actual) unemployment rate is __________ the natural unemployment rate
A) greater than; less than B) greater than; greater than C) less than; greater than D) less than; less than E) less than; equal to
Suppose the goal of a union is to maximize the total income of all workers it represents. In this case, it will probably aim for a wage at which the elasticity of demand for workers is
A. 0 B. infinite. C. 1 D. ranging from 2 to 5.