When the wage rate falls, if the substitution effect outweighs the output effect, the use of machinery will
A. rise.
B. fall.
C. remain the same.
B. fall.
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What explains any divergence between nominal and real GDP?
A) Constant prices B) Changing prices C) Constant output D) Changing output E) None of the above.
A competitive firm
a. and a monopolist are price takers. b. and a monopolist are price makers. c. is a price taker, whereas a monopolist is a price maker. d. is a price maker, whereas a monopolist is a price taker.
Predictions of a dependent variable are subject to sampling variation.
Answer the following statement true (T) or false (F)
What causes movement from point A to point B on the curve?
a. a decrease in the price level from PL2 to PL1
b. an increase in the price level from PL1 to PL2
c. a leftward shift of the aggregate demand curve
d. an increase in real GDP from RGDP1 to RGDP2