Do economists analyze people's thought processes or do they look at what people actually do?
A) Economists focus only on people's thought processes.
B) Economists focus on what people do, not their thought processes.
C) An economist's focus is about half-and-half between actions and thought processes.
D) Macroeconomists focus on thought processes while microeconomists focus on actions.
B
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According to the New Classical theory, why may output differ from its full-employment level in the short run?
What will be an ideal response?
Given a national income of $900 billion, an MPC of 0.8, and autonomous consumption of $60 billion, what is the level of consumption spending?
a. $700 billion b. $760 billion c. $780 billion d. $840 billion e. $900 billion
Consider the market for capital equipment. Suppose the value of the marginal product of capital equipment increases. Holding all else constant, the equilibrium rental price of capital equipment will
a. increase. b. decrease. c. not change. d. It is not possible to determine what will happen to the equilibrium rental price of capital equipment.
One way to ensure all producers benefit from a price floor is to:
A. ration a certain quantity per producer. B. ration a certain quantity per consumer. C. give a government guarantee to buy all surplus. D. All of these are examples of ensuring all producers benefit using non-price methods.