A revaluation causes which of the following to occur in the short run in the AS/AD model?
A) a reduction in net exports
B) a reduction in the price level
C) a reduction in output
D) all of the above
E) none of the above
D
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President George W. Bush used part of the budget surplus inherited from the Clinton administration to
A) stimulate the economy that was slowing down following the end of the high-tech investment boom. B) fund tax cuts. C) increase government entitlement spending. D) both A and B.
In a country with a working-age population of 30 million, 18 million are employed, 2 million are unemployed, and 2 million of the employed are working part-time, half of whom wish to work full-time. The involuntary part-time rate is
A) 4.5 percent. B) 10 percent. C) 4.8 percent. D) 5 percent. E) none of the above.
Recall the Application about the salaries paid in Major League Baseball to answer the following question(s). Some Major League Baseball players are free agents, meaning they are free to negotiate a contract with any team. Other players are journeymen and apprentices, who are restricted to a single team.Recall the Application. On average, free agents in Major League Baseball tend to be paid a salary ________ their marginal revenue product.
A. significantly higher than B. significantly lower than C. close to D. unrelated to
In a perfectly competitive market, if market price is lower than the average total cost of production:
A) new firms will enter the market. B) existing firms will leave the market. C) all existing firms will earn positive economic profits. D) all existing firms will earn zero economic profits.