The lag in realizing that a macroeconomic problem exists is called
A) the recognition lag.
B) the implementation lag.
C) the impact lag.
D) the market lag.
Ans: A) the recognition lag.
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In the Battle of the Sexes game,
a. Fred and Ethel are best off choosing the activity they prefer. b. Fred is better off attending the opera with Ethel than having Ethel attend the boxing match with him. c. Ethel is better off attending the boxing match with Fred than having Fred attend the opera with her. d. Fred and Ethel would both be better off choosing to attend either activity together than going alone to the activity they prefer.
Assuming a 10-percent decrease in both the nominal (money) wage and the price level in the classical model, then the quantity of labor supplied will
a. also decrease by 10 percent. b. increase by 10 percent. c. remain constant. d. decrease by less than 10 percent.
Rolnick and Weber point out that a bimetallic standard will not exhibit Gresham's Law if:
a. people are willing to use coins at their market values. b. people are willing to use coins at their face values. c. the government regulates the quantity of each type of coin in circulation. d. paper money circulates along with minted coins.
Aggregate supply (AS) refers to:
a. the total quantity of inputs that firms will request and purchase. b. the total quantity of output that firms will produce and sell. c. the smallest quantity of output that firms will produce and destroy. d. the total quantity of inputs that firms will request and waste.