The short-run aggregate supply curve shows ________ while the long-run aggregate supply curve shows ________.
A. output; aggregate spending
B. potential output; aggregate spending
C. the current inflation rate; potential output
D. potential output; the current inflation rate
Answer: C
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Labor force participation is a guaranteed ticket out of poverty
Indicate whether the statement is true or false
Suppose that a rare virus infects and kills a significant percentage of the population. Assuming that land and labor are complements in a farming production function, what would happen to the wages earned by workers and the rents earned by landowners?
a. Both wages and rents would increase. b. Both wages and rents would decrease. c. Wages would increase, and rents would decrease. d. Wages would decrease, and rents would increase.
The process of making the best of our limited resources by doing the things we are best at and hiring other people to do the things we are not particularly good at is called
A) absolute advantage. B) comparative advantage. C) specialization. D) protectionism.
What is expected to happen to old-age dependency ratios in the United States?
A. Since we do not know when people will retire and how long they will live, it is impossible to estimate. B. As the population ages, the old-age dependency ratio is expected to rise. C. The old-age dependency ratio is expected to stay about the same as technology and the aging of the population counterbalance one another. D. The old-age dependency ratio is expected to fall as workers become more productive.