Say's Law is the claim that the aggregate value of goods and services produced necessarily:
A. increases over time.
B. will decrease over time.
C. creates a smaller value of aggregate demand for those goods.
D. creates an equal value of aggregate demand for those goods.
Answer: D
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If the Fed sells government securities to a member of the nonbank public, then the resulting effect on the quantity of money is
A) that there is no change in the quantity of money. B) much larger than if the securities were sold to a bank. C) much smaller than if the securities were sold to a bank. D) the same as if the securities were sold to a bank. E) None of the above answers is correct.
We distinguish between the long-run aggregate supply curve and the short-run aggregate supply curve. In the long run
A) technology is fixed but it is not in the short run. B) the price level is constant but in the short run it fluctuates. C) the aggregate supply curve is horizontal while in the short run it is upward sloping. D) real GDP equals potential GDP.
If Nike and Adidas are faced with the game in the figure shown, we can predict:
A. an outcome that is good for society and less than ideal for the companies.
B. an outcome that is less than ideal for society, but optimal for the companies.
C. that both will follow their dominant strategy and society will lose.
D. None of these is likely to happen.
Structural unemployment is frequently caused by:
a. technological changes that make certain job skills obsolete. b. temporary layoffs in industries such as construction. c. the impact of recessions on employment. d. none of these.