The Fisher effect is crucial for understanding changes over time in
a. the nominal interest rate.
b. the real interest rate.
c. the inflation rate.
d. the unemployment rate.
a
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A perfectly competitive firm will produce at an economic loss (negative profit) in the short run rather than discontinue production if there is a rate of output at which price
a. exceeds average variable cost b. exceeds average fixed cost c. exceeds average total cost d. exceeds marginal revenue e. equals marginal cost
The three basic categories of resources are land, labor, and:
a. money. b. time. c. energy. d. capital.
The official unemployment rate may not reflect the true state of unemployment because:
a. part-time employees who want to work more hours are treated the same statistically as those who hold full-time jobs. b. some individuals who want to work may become discouraged and cease actively looking for work c. workers laid off from their jobs and looking for new ones are not counted among the unemployed. d. (a) and (b) only.
OECD data for 1960 through 1999 indicates that a 10 percent increase in government expenditures as a percent of GDP
a. increases economic growth by about 5 percent. b. increases economic growth by about 2 percent. c. has no effect on economic growth. d. reduces economic growth by about 1 percent.