If Bonnie can produce either 10 hats or 20 scarves in a month, and Phil can produce either 10 hats or 5 scarves in a month, then
A) Bonnie is equally efficient at producing hats, compared to Phil.
B) Bonnie is more efficient at producing hats, compared to Phil.
C) Bonnie is more efficient at producing scarves, compared to Phil.
D) Phil is more efficient at producing scarves, compared to Bonnie.
C
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The difference between the Keynesian and classical labor supply functions is that in the Keynesian version
a. workers know the real wage while in the classical system workers must form an expectation of the price level. b. workers must form an expectation of the price level while the workers know the real wage in the classical system. c. workers are assumed to be interested in the money wage while in the classical version workers know the real wage. d. labor supply depends on the actual real wage while labor supply depends on the expected real wage in the classical system.
The current account records
a. last year's flows of funds into and out of the country b. current flows of imports and exports of goods and services, net income earned by U.S. residents from foreign assets, and net transfer payments c. current flows of imports and exports of goods only d. only net income earned by U.S. residents from foreign assets e. only current flows of imports and exports of goods and services and net transfer payments
A shift in the investment demand curve can be caused by a change in the expectations of profits by businessmen
a. True b. False Indicate whether the statement is true or false
What could be a reason for a rising inflation rate?
a. A decrease in government spending b. A supply shock that shifts the aggregate supply curve downward c. Unemployment below the natural rate d. Growing consumer pessimism e. A negative spending shock