In the classical model, what happens to the level of real GDP if aggregate demand increases?
A. Real GDP would increase at first, then decrease.
B. Real GDP decreases.
C. Real GDP increases.
D. Real GDP would remain the same, at equilibrium.
Answer: D
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If the population is 300 million, with 70 million under the age of 16 and institutionalized, another 70 million not in the labor force, 10 million unemployed, and 150 million employed, the employment-to-population rate is
A) 53.3 percent. B) 65.2 percent. C) 46.7 percent. D) 87.5 percent.
The total amount of consumer surplus in a market is equal to the area below the demand curve
Indicate whether the statement is true or false
If the marginal productivity of labor is constant for all levels of output, then the average productivity of labor
A) is constant. B) equals the marginal productivity of labor. C) Both A and B above. D) Either A or B above but not both.
The demand for curve for money
a. shows the amount of money people actually hold b. shows the amount of money people would like to hold, given the constraints they face c. shifts if the interest rate changes d. is independent of the price level e. changes whenever the Fed changes the money supply.