Which of the following is not a macroeconomic statement?
A. Jenny's wage rate rose, and in response, she decided to work more hours.
B. The Federal Reserve lowered interest rates at its last meeting.
C. Congress increased the minimum wage rate in January.
D. The unemployment rate for the United States rose to 5 percent in the last quarter.
Answer: A
You might also like to view...
The money multiplier will be smaller when
A) bank customers prefer to hold a bigger amount of their money as cash (instead of in their checking account). B) when the marginal propensity to save declines. C) when the reserve ratio decreases. D) banks prefer to lend out 9 percent of their excess reserves instead of 90 percent.
During an inflationary gap,
A) the aggregate demand curve and the aggregate supply curve intersect at a level of real GDP that exceeds potential GDP. B) the aggregate demand curve and the aggregate supply curve intersect at potential GDP. C) the aggregate demand curve and the aggregate supply curve do not intersect. D) real GDP is less than potential GDP. E) the price level will fall to restore the long-run equilibrium.
Explain why many fishermen on a commonly owned lake continue to fish until the revenue from the average catch is equal to the marginal cost of fishing -- and why the same is not true for a firm that employs fishermen to fish on a privately owned lake.
What will be an ideal response?
In which of the following situations would a firm be more likely to rely on a capital-intensive method of production?
A) When the rate of technological innovation is low. B) When capital is relatively expensive. C) When the firm's output cannot be produced using the assembly line method of production. D) When labor supply is limited relative to the available amount of capital.