According to the misperceptions theory, when P < Pe, output is ________ its full-employment level and the short-run aggregate supply curve must shift ________ to restore full employment
A) below; upward
B) below; downward
C) above; upward
D) above; downward
B
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In recession years, ________ jobs are lost than created, and vacancies and job openings ________
A) more; increase B) more; decline C) fewer; decline D) fewer; increase
If the government decides to spend an extra $5 billion on fighter jets that they would otherwise have spent on road construction, and the MPC = 0.75, what is the effect on AD? a. It has no effect
b. It increases by $5 billion. c. It increases by $15 billion. d. It increases by $20 billion.
The equilibrium price level and the equilibrium level of real GDP are jointly determined by the intersection of the economy’s aggregate supply and aggregate demand schedules.
Answer the following statement true (T) or false (F)
When the production function is represented by Y = NA, labor productivity is represented by which of the following expressions?
A) 1/A B) NA C) A/Y D) Y/A E) none of the above