In the aggregate demand and supply model, the:
A. aggregate supply curve is horizontal at full-employment real GDP.
B. vertical axis measures real GDP.
C. vertical axis measures the overall price level.
D. horizontal axis measures the overall price level.
Answer: C
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Economic growth can be depicted as a
A) shift in the contract curve. B) a change in the dimensions of the Edgeworth box. C) a change in the preference curves of individuals. D) a change in the number of people in the Edgeworth box.
What is corporate culture?
What will be an ideal response?
A system in which people trade goods they don't want to consume for goods they do want to consume is called
A. a commodity money system. B. a fiat money system. C. an indirect exchange economy. D. a barter system.
The chapter shows that as a general rule people with more education earn higher salaries. Economists have offered two explanations of this relationship
The human capital argument says that high schools and colleges teach people valuable skills and employers are willing to pay higher salaries to attract people with those skills. The signaling argument says that college graduates earn more because a college degree is a signal to employers that a job applicant is diligent, intelligent, and persevering. How might you use data on people with two, three, and four years of college education to shed light on this controversy?