If workers always see inflation coming, and if they demand wage increases in advance so that inflation does not erode real wages, then the economy’s aggregate supply curve on the AD–AS diagram will
A. be a vertical line corresponding to potential GDP.
B. be a horizontal line corresponding to potential GDP.
C. slope downward.
D. slope upward.
Answer: A
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For most consumers, the process of learning about the efficiency and durability of various brands of refrigerators can be considered
a. irrational b. unproductive c. a vocation d. nonmarket work e. costless
A flat tax: a. is designed so that everybody would pay the same number of dollars in taxes
b. is designed in such a way that as a person's income rises, the tax rate falls. c. is designed so that everybody would be charged the same percentage of their income. d. is designed to take a smaller percentage of higher incomes as compared to lower incomes.
The change in total output when one more unit of a resource is employed is called
a. total revenue b. marginal revenue product c. marginal physical product d. quantity supplied e. wage rate
A headline reads "Soccer is the new popular sport among youth." In a competitive market, this situation would lead to a(n):
a. Increase in the price of soccer shoes and decrease in quantity sold b. Decrease in the price of soccer shoes and increase in quantity sold c. Increase in the price of soccer shoes and quantity sold d. Decrease in the price of soccer shoes and quantity sold