Although asset price bubbles seem obvious after the fact, it is much more difficult to draw such a conclusion before the fact
a. True
b. False
Indicate whether the statement is true or false
True
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During the period from 2001 to 2006, there were several major cuts in personal income tax rates. What effect did these have on the value of the multiplier?
a. They decreased the value of the multiplier. b. They had no effect on the multiplier. c. They increased the value of the multiplier. d. The effect was uncertain.
The analysis of Friedman and Phelps argues that an expected change in inflation has no impact on the unemployment rate
a. True b. False Indicate whether the statement is true or false
Answer the following statement(s) true (T) or false (F)
1. When labor and capital are complements in production, a higher wage will cause a firm to use more capital in the long run. 2. When a firm's long-run demand curve for labor is derived, the amount of capital employed is held constant. 3. The substitution effect of a rise in the wage may increase or decrease the firm's employment of labor. 4. Derived demand for an input is the process by which individual firm's demand for labor are aggregated to get the industry demand for labor. 5. The substitution effect on labor always decreases the amount of labor employed when the wage rate goes up.
The increase in the price of sugar created by the tariff will lead domestic consumption to fall by ________ tons per year, compared to when the economy is open without the tariff. 
A. 20 B. 40 C. 10 D. 30