In New Keynesian macroeconomics, when marginal costs are too sticky to change in proportion to nominal aggregate demand, prices ________ and so menu costs ________ needed to explain business cycles
A) are also sticky, are
B) are also sticky, are not
C) are still perfectly flexible, are
D) are still perfectly flexible, are not
B
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Which of the following is true of an import quota?
a. is a tax of imported goods b. limits quantity of imports allowed into a country c. will decrease the price of imported goods d. will raise revenue for the government e. helps to address a balance of trade surplus
Of the 500,000 people (age 16+) in a particular country, 300,000 people are in the labor force. Of these, 240,000 are employed and 60,000 are unemployed. Of the 200,000 workers not in the labor force, 20,000 want jobs but have given up looking for one. What is the unemployment rate if discouraged workers (i.e., the hidden unemployed) are counted as being unemployed?
A. 48% B. 25% C. 10% D. 60% E. 20%
When wages increase, the income effect ________ the supply of labor and the substitution effect ________ the supply of labor.
A. decreases; increases B. increases; decreases C. increases; increases D. decreases; decreases
The first structured investment vehicle (SIV) was set up by ________ in 1988
A) J.P. Morgan B) Chase C) Citigroup D) Goldman Sachs