At what level of output do consumers demand fewer goods than businesses are producing?
a. Y1
b. Y*
c. Y2
d. 0
c. Y2
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The income approach to measuring GDP is based on summing
A) the values of final goods, intermediate goods and services, used goods, and financial assets. B) the production of each industry. C) consumption expenditure, investment, government expenditures on goods and services, and net exports of goods and services. D) wages, interest, rent, and profits. E) consumption expenditure and wages.
In a competitive market free of government regulation,
A. price adjusts until quantity demanded is less than quantity supplied. B. supply adjusts to meet demand at every price. C. price adjusts until quantity demanded is greater than quantity supplied. D. price adjusts until quantity demanded equals quantity supplied.
If efficiency wages became more common,
a. both the long-run Phillips curve and the long-run aggregate supply curve would shift right. b. both the long-run Phillips curve and the long-run aggregate supply curve would shift left. c. the long-run Phillips curve would shift right, and the long-run aggregate supply curve would shift left. d. the long-run Phillips curve would shift left, and the long-run aggregate supply curve would shift right.
The share of federal government spending on healthcare has risen substantially over time. This is most likely a result of
a. medical advances that provide new, better, but often more expensive medical treatments. b. a rising population of the elderly in the economy. c. health insurance reform that will include government subsidies for health insurance for many low-to-moderate income families. d. All of the above are important factors.