If total output increases from $1 trillion to $2 trillion as population increases from 100 million to 200 million, then output per person:
A. remains constant.
B. doubles.
C. decreases
D. increases, but by less than 100 percent.
Answer: A
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If a macroeconomic variable tends to aid in predicting the future path of real GDP, it is said to be a
A) convenient variable. B) coincident variable. C) leading variable. D) lagging variable.
In the short run, wages are assumed to be: a. constant
b. sticky. c. inflexible. d. all of the above are true.
Interest is the:
A. price paid for the use of money. B. opportunity cost of time. C. expectation of a future return on investment. D. reward for consuming rather than saving.
Consider a labor market in equilibrium. If both demand curve and supply curve of labor shift to the right, then the wage rate in the market will:
A. increase. B. decrease. C. remain unchanged. D. either increase or decrease or remain unchanged.