Empirical research suggests that the steepness of the aggregate supply curve depends on the
A. size of the multiplier.
B. interest rate.
C. level of wage rate.
D. amount of excess capacity in the economy.
Answer: D
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In the above figure, the monopolistically competitive firm makes an economic profit of
A) $0. B) between $0 and $50 per day. C) between $50.01 and $100 per day. D) greater than $100.01 per day.
Assume that an economy is in equilibrium with a budget deficit of $130 billion, positive net exports of $453 billion, and savings equal to $1,550 billion. If taxes are zero, then planned investment spending must be equal to:
a. $1,550 billion. b. $130 billion. c. $1,873 billion. d. $1,227 billion. e. $967 billion.
"Countries are poor because they cannot afford to save and invest" is called the:
A. vicious circle of poverty. B. savings-investment trap. C. LDC trap. D. cycle of insufficient credit.
Human capital is an important ingredient in the economic growth of a nation.
Answer the following statement true (T) or false (F)