According to Okun's law, when cyclical unemployment is negative, the output gap:
A. is positive.
B. equals the rate of cyclical unemployment.
C. equals zero.
D. is negative.
Answer: A
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Research confirms that government provision of infrastructure:
A. promotes economic growth. B. increases human capital. C. leads to reduced spending on research and development. D. hinders economic growth.
The implicit rental rate for capital is
A) an accounting cost. B) part of the firm's normal profit. C) an opportunity cost. D) a cost that is irrelevant to the business.
In Figure 13-1 above, which money demand curve reflects the introduction of interest-bearing checking accounts?
A) ( 0) B) L(Y0) C) (M1/P)0 D) (M1/P)1
A movement down and to the left along the aggregate supply curve will occur when
a. firms' average markup is stable and a decrease in real GDP causes unit costs to fall b. world oil prices fall, thus decreasing the price level c. a change in fiscal policy causes aggregate expenditure to increase d. firms decide to produce less than before at each price level e. an increase in real GDP causes the price level to fall