In general economic environments that correspond to lower levels of planned aggregate expenditure for a given level of Y have PAE curves that are:
A. higher on the expenditure diagram.
B. lower on the expenditure diagram.
C. at multiple points on the diagram.
D. equivalent at point in the diagram.
B. lower on the expenditure diagram.
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A primary reason for the use of implicit contracts in internal labor markets is to
A. reduce the training and recruitment expenses. B. establish long-term employment relationships. C. encourage employees to participate in decision making. D. reduce the costs associated with formalizing contracts.
Which of the following actions results in the shortest lag between recognition of a problem and an appropriate stabilization response?
A. Congress writes legislation providing more automatic stabilizers in the economy. B. Congress provides limited authority to the president to alter fiscal or monetary policy for the purpose of stabilization. C. The appropriation and authorization responsibilities of Congress are transferred to the executive branch in order to eliminate congressional lags. D. Congress takes authority over stabilization and is not required to wait for the executive branch to respond.
The word "competition" in the label "monopolistic competition" refers to the fact that:
A. there are very few firms producing in the market. B. firms have no control over the price they charge. C. firms vie against each other to get customers to buy their version of the product. D. None of these
Refer to the above table. The value of M1 is
A. $810 billion. B. $1,260 billion. C. $760 billion. D. $2,560 billion.