Economic growth
A. Means that capacity has decreased in the short run.
B. Causes the production possibilities curve to shift inward.
C. Refers to an increase in output.
D. Cannot be sustained over time.
Answer: C
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Describe the three ways that banks normally earn revenue
What will be an ideal response?
High-wage workers are
A. more likely than low-wage workers to supply more labor when the wage rate rises. B. about as likely as low-wage workers to supply more labor when the wage rate rises. C. less likely than low-wage workers to supply more labor when the wage rate rises. D. about as likely as low-wages workers to supply less labor when the wage rate rises.
Suppose the nation is in a recession. As a result, the current macroeconomic equilibrium occurs along the flat portion of the aggregate supply curve. A moderate increase in aggregate demand is likely to
A. increase the equilibrium price level with little effect on equilibrium real GDP. B. increase equilibrium real GDP with little effect on the price level. C. cause the price level to fall. D. decrease employment.
In the market for land, if the supply of land is perfectly inelastic, an increase in the demand for land will result in a(n)
A) increase in the real interest rate. B) increase in economic rent. C) decrease in the equilibrium price. D) increase in the quantity supplied of land.