Everything else held constant, if aggregate output is to the right of the LM curve, then there is an excess ________ of money which will cause the interest rate to ________
A) supply; fall
B) supply; rise
C) demand; fall
D) demand; rise
D
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Excluding household and underground production leads to
A) underestimation of real GDP but not nominal GDP. B) overestimation of real GDP but not nominal GDP. C) overestimation of both real GDP and nominal GDP. D) underestimation of both real GDP and nominal GDP. E) underestimation of real GDP an overestimation of nominal GDP.
The idea that paying higher wages attracts a more talented labor pool is called the
a. winner's curse b. efficiency wage theory c. marginal productivity theory d. lemons problem e. theory of the second best
Buyers are able to buy all they want to buy and sellers are able to sell all they want to sell at a. prices at and above the equilibrium price
b. prices at and below the equilibrium price. c. prices above and below the equilibrium price, but not at the equilibrium price. d. the equilibrium price but not above or below the equilibrium price.
Whenever a firm uses input X but not input Y, then at the chosen input combination:
A. MRTSXY ? PX/PY. B. MRTSXY ? PX/PY. C. MRTSXY = PX/PY. D. MRTSXY = -PX/PY.