A temporary decrease in government purchases would ________ the domestic real interest rate and ________ net desired saving (desired saving less desired investment) in the economy.
A. lower; increase
B. lower; decrease
C. raise; increase
D. raise; decrease
Answer: A
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A mismatch of the skills of unemployed workers and the skills required for existing jobs is defined as:
a. involuntary unemployment. b. cyclical unemployment. c. structural unemployment. d. frictional unemployment.
Diseconomies of scope occur when:
A. a firm's input prices rise as it increases output. B. a firm's average cost of production rises as it increases production. C. producing two products in a single firm is more expensive than producing them in separate firms. D. a firm's average cost of production falls as it increases production.
If there was a significant find of natural gas in a readily accessible location in the U.S., this would likely
A. decrease aggregate demand. B. increase aggregate demand. C. increase aggregate supply. D. decrease aggregate supply.
With an upward-sloping supply curve, which of the following istrue?
A. An increase in price results in a decrease in quantity supplied. B. An increase in price results in an increase in supply. C. A decrease in price results in a decrease in quantity supplied. D. A decrease in price results in an increase in supply.