The IS curve becomes steeper when
A) government spending is relatively small.
B) the income tax rate in the current period is relatively small.
C) current changes in the real interest rate cause large changes in current real output.
D) changes in the current real interest rate cause small changes in current demand.
E) none of the above
D
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Proprietor's income is not considered part of national income
Indicate whether the statement is true or false
If the numbers of employed and unemployed do not change but the size of the civilian population increases by 15%, what would be the effect?
a. no change in the unemployment rate and a decrease in the labor force participation rate b. an increase in the unemployment rate and a decrease in the labor force participation rate c. an increase in the unemployment rate and no change in the labor force participation rate d. an increase in the unemployment rate and an increase in the labor force participation rate
A profit-maximizing firm will shut down in the short run when
a. price is less than average variable cost. b. price is less than average total cost. c. average revenue is greater than marginal cost. d. average revenue is greater than average fixed cost.
If marginal cost is rising, what must be happening?
a. Average variable cost must be falling. b. Marginal product must be falling. c. Marginal product must be rising. d. Average fixed cost must be rising.