Policymakers generally are:

A. more concerned about structural deficits than cyclical deficits.
B. more concerned about cyclical deficits than structural deficits.
C. not concerned about structural or cyclical deficits.
D. equally concerned about structural and cyclical deficits.


Answer: A

Economics

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To model the input decisions for a production system, we plot labor on the horizontal axis and capital on the vertical axis. In the short run, labor is a variable input and capital is fixed

The short-run expansion path for this production system is: A) a vertical line. B) a horizontal line. C) equal to the 45-degree line from the origin. D) not defined.

Economics

What would happen to the real interest rate if originally the nominal interest rate was 14% and the inflation rate was 10%, then the nominal interest rate fell to 7% as the inflation rate fell to 4%? It would go from: a. 24% to 11%. b. 11% to 24%. c. 4% to 3%

d. 3% to 4%.

Economics

Employees often limit their output and engage in soldiering because of the fear that if they exceed output levels this time, management will increase output goals for the next time period. This is called the:

A. benchmark effect. B. ratchet effect. C. incentive effect. D. goal standard effect.

Economics

Refer to Figure 10.4. If the market was perfectly competitive, the consumer surplus would be:

A. $850. B. $625. C. $300. D. $100.

Economics