In the new Keynesian model, if an aggregate demand increase is unanticipated, then ________
A) aggregate demand will not change
B) short-run aggregate supply will shift up immediately
C) short-run aggregate supply will shift down immediately
D) there is no immediate effect on the short-run supply curve
D
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Macroeconomics, as opposed to microeconomics, includes the study of what determines the level of
A) output of a specific firm. B) employment in the economy. C) employment in a specific industry. D) output of a specific industry.
In general, each additional year of schooling is worth about:
A. 5 percent more in overall earnings over the course of a lifetime. B. 50 percent more in overall earnings over the course of a lifetime. C. 25 percent more in overall earnings over the course of a lifetime. D. 10 percent more in overall earnings over the course of a lifetime.
The kinked-demand curve model of oligopoly is useful in explaining:
A. the way that collusion works. B. why oligopolistic prices and outputs are extremely sensitive to changes in marginal cost. C. why oligopolistic prices might change only infrequently. D. the process by which oligopolists merge with one another.
Mainstream economics views monetary policy as a:
A. Source of instability, similar to the view of monetarism B. Stabilizing factor, similar to the view of monetarism C. Source of instability, while monetarism views it as a stabilizing factor D. Stabilizing factor, while monetarism views it as a source of instability