What happens when there is a sudden increment or decline in the supply of a specific product which affects equilibrium?
a. Capital flight
b. Economic equilibrium
c. Elasticity of supply
d. Supply shock
Ans: d. Supply shock
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If the marginal revenue product of labor improves, which of the following shifts in the labor market should occur?
A. Demand for labor should shift to the right. B. Supply of labor should shift to the left. C. Demand for labor should shift to the left. D. Supply of labor should shift to the right.
According to Real Business Cycle theory,
a) lack of consumer confidence causes most business cycles b) price fluctuations are unimportant because they affect nominal, not real GDP c) recessions are an optimal response to negative technology shocks d) fiscal policy is the most appropriate way to smooth out economic fluctuations e) labor supply curves are extremely steep
Answer the question on the basis of the following information. Suppose the members of population A, consisting of Al, Bob, Curt, Doris, and Ellie, receive annual incomes of $5,000, $2,500, $1,250, $750, and $500, respectively. Refer to the given
information. What percentage of total income is received by the richest quintile? A. 50. B. 5. C. 25. D. 20.
Which of the following is a component of the equation of exchange?
A. Consumption. B. The interest rate. C. Investment. D. The velocity of money.