In the long run, an increase in productivity would cause output to ________ and the aggregate price level to ________
A) fall; rise
B) fall; fall
C) rise; fall
D) rise; rise
C
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In the Gordon growth model, a decrease in the required rate of return on equity
A) increases the current stock price. B) increases the future stock price. C) reduces the future stock price. D) reduces the current stock price.
The difference between M1 and M2 is given by which of the following?
a. M1 includes currency, coins, gold and silver, whereas M2 does not contain gold and silver. b. M1 is made up of currency, traveler's checks, and money in checkable accounts, whereas M2 contains M1 plus savings deposits and time deposits. c. M1 is limited to currency, whereas M2 contains M1 plus traveler's checks and money in checkable accounts. d. M1 includes currency and traveler's checks, whereas M2 contains M1 plus money in checking accounts.
Economic growth can be represented by a (an): a. percentage change in real GDP
b. rightward shift of the long-run aggregate supply curve (LRAS). c. outward shift of a production possibilities curve. d. all of the above.
To derive the labor demand curve for a particular market, one should ________ for all the firms in the market.
A. vertically sum the marginal product of labor curves B. horizontally sum the value of the marginal product of labor curves C. vertically sum the value of the marginal product of labor curves D. horizontally sum the marginal product of labor curves