Most recessions in the United States since World War II have begun with
A) a decline in residential construction. B) a rapid increase in the price level.
C) a stock market crash. D) a substantial number of bank failures.
A
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According to the equation of exchange, if velocity and real GDP do not change, a 3 percent increase in the quantity of money
A) raises the price level by 3 percent. B) raises the price level by 3 ÷ (velocity). C) raises the price level by less than 3 percent. D) lowers the price level by 3 ÷ (real GDP). E) lowers the price level by 3 percent.
Consider an economy in which all labor markets are perfectly competitive, all workers are equally able to do any job, and the nonwage attributes of all jobs are equally attractive to all workers. Which of the following would occur in a labor market where the current wage rate exceeds wage rates in alternate markets?
a. Labor demand will decrease, and the equilibrium wage rate will fall. b. Labor demand will increase, and the equilibrium wage rate will fall. c. Labor demand will increase, and the equilibrium wage rate will rise. d. Labor supply will decrease, and the equilibrium wage rate will rise. e. Labor supply will increase, and the equilibrium wage rate will fall.
Monopolistic competition has at least one similarity to perfect competition: firms are free to enter and leave the industry.
Answer the following statement true (T) or false (F)
The minimum point of the average total cost curve always occurs at a larger output level than the minimum point of the average variable cost curve because:
A. marginal cost is rising. B. average fixed costs are falling. C. marginal cost is falling. D. average fixed costs are rising.