Which of the following is likely to happen if the level of technology used in an economy improves, assuming all else equal?
A) The economy's labor demand curve will shift to the right.
B) There will be a downward movement along the labor demand curve.
C) The economy's labor demand curve will shift to the left.
D) There will be an upward movement along the labor demand curve.
A
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Given the equations for C, I, G, and NX below, what is the marginal propensity to consume?
C = 1,000 + 0.8Y I = 1,500 G =1,250 NX = 100 A) 0.2 B) 0.8 C) 1.8 D) 10
Suppose Winston's annual salary as an accountant is $60,000, and his financial assets generate $4,000 per year in interest. One day, after deciding to be his own boss, he quits his job and uses his financial assets to establish a consulting business, which he runs out of his home. To run the business, he outlays $8,000 in cash to cover all the costs involved with running the business, and earns revenues of $150,000. What are Winston's accounting profits?
A. $78,000 B. $142,000 C. $138,000 D. $150,000
The interest-rate effect is the impact on real GDP caused by the ____ relationship between the price level and the interest rate
a. direct b. independent c. linear d. inverse
During the 1970s, countercyclical fiscal policy
a. to spur increases in real GDP failed b. worked better than predicted, curbing inflation while decreasing unemployment rates c. demonstrated that the economy could be fine-tuned using aggressive fiscal policy d. showed that the Keynesian assumption about the shape of the aggregate supply curve was basically correct e. failed to lower the unemployment rate and actually increased the inflation rate