Were the government to decree that henceforth all wages and other input prices are to be indexed to nominal aggregate demand, this ________ "coordination failure" of the macroeconomy and ________ business cycles
A) solves the, amplifies
B) solves the, dampens
C) creates a, amplifies
D) creates a, dampens
B
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Refer to the figure above. The quota shown in the diagram equals
A) 200 units. B) 500 units. C) 1000 units. D) 1200 units.
Starting from equilibrium in the ISLM framework, an increase in money demand results in
A) a rise in income and the interest rate. B) a rise in income and a decline in the interest rate. C) a decline in income and the interest rate. D) a decline in income and a rise in the interest rate.
Which of the following is an example of human capital?
A. The Internet B. The Google search engine on the Internet C. Your ability to use Google D. None of these is an example of human capital.
The consumption function has a positive slope while the savings function has a negative slope
a. True b. False Indicate whether the statement is true or false