In the long run, unusually high unemployment
a. indicates that an economy is operating above potential GDP
b. forces the wage rate down
c. eventually causes the aggregate supply curve to shift upward
d. pushes the price level upward
e. causes the aggregate demand curve to shift rightward
B
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Which of the following are financial intermediaries?
a. both banks and mutual funds b. banks but not mutual funds c. mutual funds but not banks d. neither banks or mutual funds
The multiplier is equal to:
A. 1 - MPC. B. MPS ? MPC. C. 1 ? MPS. D. 1 ? MPC.
The quantity of goods and services that can be produced by one worker or by one hour of work is referred to as
A) technology. B) labor productivity. C) real GDP. D) human capital.
The Federal Reserve is responsible for monetary policy in the United States.
Answer the following statement true (T) or false (F)