Refer to Table 16-1. Consider the hypothetical information in the table above for potential real GDP, real GDP, and the price level in 2016 and in 2017 if Congress and the president do not use fiscal policy
If Congress and the president want to keep real GDP at its potential level in 2017, they should
A) decrease government purchases. B) decrease income taxes.
C) increase the level of interest rates. D) decrease the money supply.
B
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Countries that have greater employment protection laws than other countries generally have ________ unemployment rates, with spells of unemployment tending to ________
A) lower; last longer B) lower; be shorter C) higher; last longer D) higher; be shorter
Which of the following is considered a major player in the financial system?
A. Intermediaries B. Entrepreneurs C. Speculators D. Students
If the production of computer chips yields greater technology spillovers than the production of potato chips, the government should
a. encourage the production of computer chips with subsidies. b. discourage the production of potato chips with taxes. c. encourage the production of potato chips with subsidies. d. discourage the production of computer chips with taxes.
The following graph shows the marginal and average product curves for labor, the firm's only variable input. The monthly wage for labor is $2,800. Fixed cost is $160,000.
When the firm uses 40 units of labor, how much output does it produce?
A. 1,600 units B. 2,800 units C. 4,000 units D. 400 units E. none of the above