The intersection of aggregate demand and long-run aggregate supply identify the price level at which total planned
A. real expenditures equal total planned production.
B. export spending equals total planned import spending.
C. government spending equals total planned tax revenues.
D. real expenditures equal actual nominal GDP.
Answer: A
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Everything else equal, the AC curve will shift downward if
A. input prices rise. B. input MPPs rise. C. output rises. D. output falls.
In the United States, the fact that the gap between the rich and the poor has been increasing is often justified by economists on the grounds that greater
a. efficiency can never be achieved without greater inequality. b. inequality does not create any problems. c. inequality is a desirable end in itself. d. inequality is an undesirable consequence of greater efficiency. e. efficiency should be achieved at any cost.
Under a tournament pay scheme, the pay gap between a few "winners" (those who receive big promotions) and other employees exceeds the productivity differences between these two groups. The reason firms might use such a scheme is that they
a. gain tax advantages by paying a few workers large salaries and using fringe benefits to compensate the rest of the employees. b. hope to raise the productivity of those who receive big promotions because marginal productivity adjusts to equal wages. c. overestimate the productivity of those who receive big promotions and inadvertently pay them "too much." d. hope to raise the productivity of all other workers, who will work harder trying to gain a big promotion
In the 1990s, humanitarians traveled to Sudan to: