According to the classical dichotomy, which of these magnitudes is affected by monetary policy?
A. the price level
B. the real wage
C. the real interest rate
D. the rate of growth of real GDP
Answer: A. the price level
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There is some evidence that demographic changes in the composition of the workforce are ________ the growth rate of labor quality, and thus ________ the growth rate of output per labor hour
A) raising, decreasing B) raising, increasing C) lowering, decreasing D) lowering, increasing
In an economy with flexible exchange rates, which measure(s) are successful at reducing unemployment in the context of the Three-Sector-Model?
a. Decrease government spending. b. Increase the discount rate for banks. c. Lower tax rates. d. Increase reserve requirements. e. All of the above
Natasha is having difficulty deciding between two jobs, A and B. As shown in the accompanying diagram, A is closer to home than B, but doesn't pay as well. Ideally, Natasha would like a job that both pays well and is close to her home.
If Natasha behaves like most decision-makers, then the addition of option C would:
A. decrease her likelihood of accepting any job. B. increase her likelihood of picking B. C. increase her likelihood of picking A. D. have no impact on her choice of A and B.
Rent control is a form of price _____ and is responsible for housing _____.
A. floor; shortages B. floor; surpluses C. ceiling; shortages D. ceiling; surpluses