A decrease in investment causes the price level to ________ in the short run and ________ in the long run
A) increase; increase further
B) increase; decrease
C) decrease; decrease further
D) decrease; increase
Answer: C
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If the unemployment rate is above its natural rate, then ________
A) output is below its potential level B) there is excess tightness in the labor market C) wages and prices will rise more rapidly and the AS curve will shift to the left D) all of the above E) none of the above
In the above figure, if d1 is the relevant demand curve for this firm, then which level of output will maximize this firm's profits or minimize its losses?
A) A B) B C) C D) D
Which of the following is a stock variable?
a. The interest rate b. Real GDP c. Investment in physical capital d. Physical capital e. Investment in human capital
Social demand equals market demand plus externalities when there are positive external benefits.
Answer the following statement true (T) or false (F)