Macroeconomics focuses on:
a. Total output and the general level of prices in the economy
b. Studies of how individual markets and industries are organized
c. How a business determines how much of a product to produce
d. The individual units that make up the whole of the economy
a. Total output and the general level of prices in the economy
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What will be the effect of a tax cut on consumption if consumption offers diminishing returns?
What will be an ideal response?
Answer the following statements true (T) or false (F)
1. In imperfect product competition, the output price is fixed to the firm. 2. The demand curve for labor is more inelastic under competitive conditions than under imperfect competition. 3. The backward-bending portion of the labor supply curve shows the income effect dominating the substitution effect. 4. Unions cause a lowering of wages in the unionized labor market. 5. Unions cause the wages to be lower in the non unionized labor market. 6. Increased licensing requirements reduce the supply of labor. 7. Unemployment rates in Japan are the highest compared to other developed countries.
If you were the Chairman of the Fed and faced inflation, you would most likely
a. increase commercial bank reserves by raising the discount rate b. increase commercial bank reserves by buying government securities c. decrease commercial bank reserves by lowering the discount rate d. decrease commercial bank reserves by selling government securities e. decrease commercial bank reserves by lowering the legal reserve requirement
Invisible hand is a term used by the economist ______ in his 1776 book An Inquiry into the Nature and Causes of the Wealth of Nations
Fill in the blank(s) with correct word