Suppose that utility over consumption and leisure takes the constant elasticity of substitution form 
. If 
falls between 0 and -1, then the labor supply curve is backward bending.
Answer the following statement true (T) or false (F)
False
Rationale: The labor supply curve in this case is downward sloping, not backward bending.
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A flat LM curve implies that
A) an increase in government spending will change output by a relatively small amount. B) a decrease in taxes will change output by a relatively small amount. C) changes in government spending and taxes will have a large multiple effect on output. D) A and B.
The Robinson-Patman Act amended and further refined which of the following laws?
a. The Sherman Antitrust Act. b. The Celler-Kefauver Act. c. The Clayton Act. d. The FTC Act. e. The Herfindahl-Hirschman Act.
In the short-run macro model, cyclical unemployment is caused by insufficient spending
a. True b. False
For an imaginary closed economy, T = $5,000; S = $11,000; C = $48,000; and the government is running a budget surplus of $1,000 . Then
a. private saving = $10,000 and GDP = $55,000. b. private saving = $10,000 and GDP = $63,000. c. private saving = $12,000 and GDP = $67,000. d. private saving = $12,000 and GDP = $69,000.