The country of Kemper is on its aggregate production function at point W in the above figure. The government of Kemper passes a law that makes 4 years of college mandatory for all citizens. After all citizens have their education, the economy will
A) move to point such as Y.
B) remain at point W.
C) move to point such as X.
D) move to point such as Z.
D
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Full employment exists when
A) there is only frictional and structural unemployment. B) the economy is at the natural unemployment rate. C) there is no cyclical unemployment. D) All of the above answers are correct.
Which of the following is true about the demand for gasoline?
A) It is probably more price elastic in the long run because price will increase by a higher percentage. B) It is probably more price elastic in the long run because it is easier to find substitutes for gasoline in the long run. C) It is probably more price elastic in the short run because price will increase by a higher percentage. D) It is probably more price elastic in the short run because it is easier to find substitutes for gasoline in the short run.
Fiscal and monetary policies adopted by the Carter administration in the first half of his term resulted in:
a. stable prices and low unemployment. b. deflation. c. a rapid rise in the inflation rate. d. a balanced federal budget.
The players in a two-person game are choosing between Strategy X and Strategy Y. If the second player chooses Strategy X, the first player's best outcome is to select X. If the second player chooses Strategy Y, the first player's best outcome is to select X. For the first player, Strategy X is called a
a. dominant strategy. b. collusive strategy. c. repeated-trial strategy. d. cartel strategy.