During a discussion with fellow economics students, Oliver emphasized the fact that prices and wages are sticky and they do not adjust quickly. Which of the following macroeconomic perspectives has most likely had the greatest influence on Oliver?
a. Classical
b. Keynesian
c. Neo Keynesian
d. Neoclassical
b
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In the final two decades of the twentieth century, per capita income in sub-Saharan Africa
A) remained relatively unchanged. B) increased by approximately 35 percent. C) increased by more than 75 percent. D) decreased by approximately 6 percent.
We use interest rates to measure the opportunity cost of holding money
Indicate whether the statement is true or false
A Consumer Price Index adjustment overcompensates for inflation because it ignores
A) the income effect when relative prices change. B) the substitution effect when relative prices change. C) that some goods are inferior. D) that the substitution effect may offset the income effect.
The demand for lobster is lower in the spring than in the summer. If the price of lobster is higher in spring than in summer then
a) consumers' tastes for lobster are greater in spring than in summer b) the supply of lobster is greater in summer than in spring. c) there are more substitutes for lobster in summer than there are in spring d) there is a shortage of lobster in spring and a surplus of lobster in summer