The aggregate production function is the
a. relationship between the amount of labor employed in the economy and the total amount of output produced
b. relationship between available labor and the total amount of output produced
c. the relationship between land and capital and labor employed in the economy
d. long-run equilibrium of the macroeconomy
e. amount of output any worker can produce given existing land and capital constraints
A
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According to Coase's analysis, when are private costs and social costs the same?
a. Always. b. When there are no transactions costs. c. When property rights are clearly defined. d. Never.
If a market participant believes that a stock price is irrationally high, they may try to borrow stock from brokers to sell in the market and then make a profit by buying the stock back again after the stock falls in price. This practice is called
A) short selling. B) double dealing. C) undermining. D) long marketing.
The goal of the business firm is maximization of ____, and the goal of the consumer is maximization of ____.
A. total sales; income B. total profit; utility C. total output; utility D. total sales; utility
Assume the MPC is 0.65 . Assuming only the multiplier effect matters, a decrease in government purchases of $20 billion will shift the aggregate demand curve to the
a. left by about $30.77 billion. b. left by about $57.1 billion. c. right by about $57.1 billion. d. right by about $30.77 billion.