Solutions to structural stagnation require difficult supply-side structural changes to accompany any demand-side stimulus if they are to be successful in reducing unemployment significantly.
Answer the following statement true (T) or false (F)
True
Demand-side stimulus alone will give the economy only a temporary boost, and it will mask the underlying structural problems. So, supply-side changes are needed as well.
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How does an increase in the price level affect the aggregate quantity of goods and services demanded?
What will be an ideal response?
The condition to decide on the optimal amount of leisure is that:
A) the average benefit of leisure should be equal to zero. B) the total benefit of leisure should be equal to the wage rate. C) the average benefit of leisure should be equal to the wage rate. D) the marginal benefit of leisure should be equal to the wage rate.
What is normal profit? How is it different from accounting profit?
If a country imposes a $10 tariff on a foreign monopolist, the domestic price will rise by:
a. more than $10. b. $10. c. less than $10. d. $0.