If the central bank decreases the money supply, then in the short run prices
a. rise and unemployment falls.
b. fall and unemployment rises.
c. and unemployment rise.
d. and unemployment fall.
b
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At point d in the above figure, the average product of labor equals
A) 15. B) 4. C) 3.75. D) approximately 1.
Which of the following best illustrates the free-rider problem? a. A tollbooth is constructed at the entrance of a privately funded highway
b. Individuals contribute toward a national defense program by paying taxes to the government. c. Some homeowners in a mountain resort area refuse to contribute toward paving the area's only access road. d. You erect a locked gate around your swimming pool to keep out unsupervised children.
Data for an economy show that the unemployment rate is 6 percent, the participation rate is 60 percent, and 200 million people 16 years or older are not in the labor force. How many people are in the working-age population in this economy?
A. 333 million B. 800 million C. 500 million D. 1.20 billion
Data on after-tax income and consumption spending for the Adam Smith family are given below:After-tax IncomeConsumption Spending9,00017,20014,00021,20019,00025,20024,00029,200Based on these data, the Adam Smith family has a marginal propensity to consume equal to:
A. 0.8. B. 0.6. C. 0.9. D. 0.75.