Which of the following is true of a higher price level?
What will be an ideal response?
The higher the price level, any given money wage purchases less, so the wage is less attractive to workers.
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The simplified Keynesian model
A) holds the price level constant. B) holds real GDP constant. C) assumes investment and saving are always equal. D) assumes unemployment is unrelated to real GDP.
Which of the following about unemployment is true?
a. Frictional unemployment implies a lack of available jobs. b. During a recession, cyclical unemployment will be low. c. When an economy is at full employment, actual unemployment will be less than the natural rate of unemployment. d. When actual GDP equals potential GDP, the actual unemployment rate will equal the economy's natural rate of unemployment.
If more foreign tourists visited the United States, this would
A. lower our merchandise trade imbalance. B. lower our overall trade imbalance. C. raise our merchandise trade imbalance. D. raise our overall trade imbalance.
The total utility of consuming 6 units of a good is 255. The marginal utility of the 6th unit is 45 and the marginal utility of the 5th unit is 65. The total utility of consuming 5 units of the good is
A. 150. B. 210. C. 195. D. 300.