Which of the following macroeconomic variables is procyclical and leads the business cycle?
A. Residential investment
B. Business fixed investment
C. Unemployment
D. Nominal interest rates
Answer: A
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Jacob has just tried on the most comfortable pair of pants that he has ever known. The pants are a(n)
A. experience good. B. credence good. C. logo good. D. information good.
Building infrastructure is referred to as
A. social overhead capital. B. human capital. C. physical capital. D. financial capital.
If total output increases from $100 billion to $200 billion as population increases from 100 million to 150 million, then output per person:
A. remains constant. B. decreases. C. increases, but by less than 100 percent. D. doubles.
After a temporary beneficial supply shock hits the economy, general equilibrium is restored by
A. a shift down and to the right of the LM curve. B. a shift down and to the left of the IS curve. C. a shift to the left of the FE line. D. a shift up and to the left of the LM curve.