Positive and normative statements differ in that
A) positive statements can be tested, whereas normative statements cannot.
B) normative statements can be tested, whereas positive statements cannot.
C) normative statements depict "what is" and positive statements depict "what ought to be."
D) normative statements never use the word "should."
A
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An increase in the money wage rate
A) increases the long-run aggregate supply. B) decreases the long-run aggregate supply. C) increases the short-run aggregate supply. D) decreases the short-run aggregate supply.
Net national product equals
A) gross national product minus statistical discrepancy. B) gross national product minus depreciation. C) national income minus taxes on production and imports. D) national income plus depreciation.
In an open economy, an increase in foreign output would cause the IS curve to shift ________ and a decrease in the foreign real interest rate would cause the IS curve to shift ________
A) down; down B) down; up C) up; down D) up; up
Which of the following is not a reason why wages respond slowly to changes in output?
a. Many labor contracts specify wages for up to three years. b. The process of wage setting in large corporations is slow moving. c. Frequent wage changes can reduce worker morale and reduce productivity. d. Firms benefit from having a reputation of paying stable wages. e. The labor supply and demand curves move rapidly to clear labor markets.