Which of the following correctly describes the automatic mechanism through which the economy adjusts to long-run equilibrium?
A) the rightward shift of the aggregate demand curve that occurs during a recession
B) the leftward shift of the short-run aggregate supply curve that occurs after a recession
C) the rightward shift of the short-run aggregate supply curve that occurs after a recession
D) the leftward shift of the aggregate demand curve that occurs after a recession
C
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If the marginal revenue product of the fifth worker hired by a firm is $15 and the price of a unit of output is $5 regardless of how much is sold, then the marginal product of the fifth worker is
a. 15 units of output b. 5 units of output c. 3 units of output d. 45 units of output e. 75 units of output
If one really believes that price spikes known as "price gouging" are due to a surge in greed among suppliers, then
A) they haven't quite mastered the economic way of thinking. B) their comfort in knowing that thousands if not millions of others agree with them is not sufficient economic evidence to conclude that their claim is correct. C) their claim implies that significant price decreases are due to a sudden reduction in greed among suppliers. D) all of the above are true.
According to the quantity theory of money, a 25 percent change in M, the quantity of money, leads to a 25 percent change in
A) V, the velocity of circulation. B) P, the price level. C) Y, real GDP. D) R, the interest rate.
What did the Lever Food Control Act of 1917 give the U.S. federal government the power to do?
(a) Take over factories during periods of war (b) Inspect meat-packing plants and control the quality of work completed (c) Buy, sell and distribute food during times of peace (d) Seize Congressional control over food-related production