Which of the effects listed below increases the quantity of goods and services demanded when the price level falls and decreases the quantity of goods and services demanded when the price level rises?
a. the wealth effect
b. the interest-rate effect
c. the exchange-rate effect
d. All of the above are correct.
d
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Holding other factors constant, if 3D-printing technology allows factory workers to manufacture more products per hour, then the real wages of factory workers will ________ and employment of factory workers will ________.
A. increase; increase B. decrease; increase C. increase; decrease D. decrease; not change
In the United States during the late 1990s, the unemployment rate fell from previous years and the inflation rate was lower than in previous years. This set of events is best described by saying that the
A) economy moved to a lower point on its short-run Phillips curve but the short-run Phillips curve did not shift. B) economy moved to a higher point on its short-run Phillips curve but the short-run Phillips curve did not shift. C) long-run Phillips curve shifted rightward. D) short-run Phillips curve shifted downward. E) short-run Phillips curve shifted upward.
A firm operating in a perfectly competitive market is a price taker because:
a. no firm has a significant market share. b. no firm's product is perceived as different. c. setting a price higher than the going price results in zero sales. d. all of these.
Which of the following correctly defines inflation?
a. An increase in the price of a particular good or service. b. An increase in the general (average) price level of goods and services in the economy. c. The growth rate in real GDP. d. None of the above.