According to real business cycle theorists, changes in Real GDP are the result of initial changes in
A) aggregate demand.
B) the money supply.
C) the expected inflation rate.
D) prices.
E) none of the above
E
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The marginal propensity to save is defined as:
A) ?C/?Yd. B) ?S/?Yd. C) ?Yd/?C. D) ?Yd/?S.
When externalities are present in market activity and production occurs at P = MC,
a. the market generates an optimal distribution of resources b. the market does not generate an optimal distribution of resources c. a free-rider condition always raises price d. P = ATC as well e. the firm suffers economic losses
The effect of labor unions on overall unemployment is _________________ since only a _______________ percentage of the labor force outside the government is unionized.
What will be an ideal response?
If the Federal Reserve wanted to change the money supply in the economy, it would be least likely to
A) change the federal funds rate. B) sell bonds on the open market. C) change the level of reserves required to be held by banks. D) buy bonds on the open market.