On the graph above, what area represents consumer surplus when the price is $10?
A. A
B. B
C. C
D. A and B
E. B and C
C. C
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Equilibrium expenditure is the level of expenditure at which
A) aggregate planned expenditure minus planned changes in inventories equals real GDP. B) aggregate planned expenditure plus planned changes in inventories equals real GDP. C) firms' inventories are zero. D) firms produce more output than they sell. E) firms' inventories are at the desired level.
The price level in the economy between 2014 and 2015 rose from 100 to 110. Between 2015 and 2016, the price level rose from 110 to 121. How does the short-run Phillips curve predict the unemployment rate will change as a result?
A) The unemployment rate will increase since inflation increased. B) The unemployment rate will decrease since inflation increased. C) The unemployment rate will decrease since inflation decreased. D) The unemployment rate will not change since there is no change in the rate of inflation.
Labor productivity measures output per hour of work
a. True b. False Indicate whether the statement is true or false
Which of the following is a tool used by the Fed in the conduct of monetary policy?
A) changes in the prime rate B) issuing new government bonds and retiring old ones C) buying and selling corporate bonds D) buying and selling federal government bonds