A simple macroeconomic model might explain how an increase in the demand for new housing would lead to a decrease in the rate of unemployment. In such a model, which of these variables is likely to be exogenous?
A) the quantity sold of home furnishings
B) the degree of unionization of the construction industry
C) the wage rate for unskilled workers
D) the level of tax revenues
E) the demand for concrete
B
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The quantity of real GDP demanded equals $16.2 trillion when the price level is 90. If the price level rises to 95, the quantity of real GDP demanded equals
A) less than $16.2 trillion. B) $16.2 trillion. C) more than $16.2 trillion. D) more information is needed to determine if the quantity of real GDP demanded increases, decreases, or does not change.
When economists refer to investment, they mean the purchasing of stocks and bonds and other types of saving
a. True b. False Indicate whether the statement is true or false
If aggregate quantity demanded is greater than aggregate quantity supplied at a particular price level, then
A) consumers will bid prices upward, and a greater quantity of output will be supplied. B) the shortage will likely be eliminated. C) a and b D) none of the above
Advances in productivity increase supply because they might
A) increase the price expected in the future. B) decrease the cost of production. C) increase the number of firms producing the good. D) raise the prices of resources used to produce the good. E) decrease the number of goods available.