In the medium run, an increase in government spending that causes an increase in the budget deficit
A) affects the level of output but not its composition.
B) affects both the level and composition of output.
C) will not affect the composition of output but will affect the price level.
D) is neutral.
E) none of the above
E
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The demand curve for labor is also
A) the supply curve for the output labor is used to produce. B) the demand curve for the output produced with labor since the demand for labor is a derived demand. C) the marginal product of labor curve. D) the marginal revenue product of labor curve.
Which of the following lists two things that both decrease the money supply?
a. raise the discount rate and make open market purchases b. raise the discount rate and make open market sales c. lower the discount rate and make open market purchases d. lower the discount rate and make open market sales
According to the theory based on rational expectations and flexible wages and prices,
A. neither fiscal nor monetary policy influence real Gross Domestic Product (GDP) in the long run. B. only the combination of discretionary fiscal policy and conservative monetary policy can affect real Gross Domestic Product (GDP) in the long run. C. monetary policy has less effect on real Gross Domestic Product (GDP) than fiscal policy in the long run. D. fiscal policy has less effect on real Gross Domestic Product (GDP) than monetary policy in the long run.
For the utility function U = Wa, what values of "a" correspond to being risk averse, risk neutral, and risk loving?
What will be an ideal response?