New classical economists believe that if policy is correctly anticipated and if rational expectations hold, when the Fed increases the money supply the result will be a(n) ______________ in the price level and ____________________________
A) decrease; no change in Real GDP
B) decrease; decrease in Real GDP
C) increase; no change in Real GDP
D) increase; increase in Real GDP
C
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Which of the following will tend to occur if price floors are imposed on a product?
A. Persistent surpluses B. Problems of disposal of goods C. Disguised discounts developing to eliminate excess production D. Overinvestment in the industry E. All of these responses are correct.
A price cut will decrease the revenue a firm receives if the demand for its product is
A. elastic. B. inelastic. C. unit elastic. D. straight elastic.
The demand curve for labor is the
A) marginal factor cost curve for labor. B) marginal physical product curve for labor. C) marginal physical product curve for labor times the wage rate. D) marginal revenue product curve for labor.
Because a change in consumer spending is positively related to a change in income, the slope of the aggregate demand function is:
a. 0. b. 1. c. equal to the MPC. d. equal to the marginal propensity to save.