When income is distributed perfectly equally in a population, the Lorenz curve is a straight line
a. True
b. False
A
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The aggregate production function relating real GDP to labor hours
A) has a constant slope. B) has a negative slope. C) has a positive slope and becomes steeper as employment increases. D) has a positive slope and becomes less steep as employment increases.
Dividing the index of import prices by the index of export prices and multiplying by 100 generates a country's terms of trade
Indicate whether the statement is true or false
Exhibit 14-6 Aggregate supply curve
?
In Exhibit 14-6, the aggregate supply curve becomes vertical at GDP = $1,200 because:
A. there are no more workers available at any wage rate to increase real GDP. B. the price level remains constant. C. the only workers available would demand higher wage rates. D. the economy is experiencing low employment and low production.
In a market system, intermediaries in the exchange process are known as
A. socialists B. free agents. C. producers. D. middlemen.