When the labor market is in equilibrium,
A) there is full employment, which means that real GDP equals potential GDP.
B) there is full employment but real GDP might be greater than, less than, or equal to potential GDP.
C) the real wage rate rises to allow real GDP to equal potential GDP.
D) there is excess labor supplied, which keeps real GDP less than potential GDP.
E) the real wage rate falls to equal the nominal wage rate because real GDP is greater than potential GDP.
A
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Government policies intended to decrease aggregate spending and output are called ________ policies.
A. fiscal B. monetary C. aggregate D. contractionary
Assuming a long-run aggregate supply curve, an increase in the money supply results in ________ in output and ________ in price level
A) an increase; no change B) a decrease; no change C) a decrease; a decrease D) no change; an increase
The commercial value of ivory is a threat to the elephant, but the commercial value of beef is a guardian of the cow. This is because
a. the cow is raised in developed countries, while the elephant lives primarily in less-developed countries. b. cows are private goods, while elephants tend to roam freely without owners. c. cows and elephants are public goods, but ivory is nonrival. d. ivory is nonrival and nonexclusive, but beef is rival and exclusive.
The Great Recession that started in 2007 was triggered by shocks in which of the following economic sectors?
A. Gold market and stock market B. International trade and foreign exchange markets C. Real estate and financial markets D. Consumer and government spending