If people work less as the wage rate increases, their labor supply curves are backward bending
Indicate whether the statement is true or false
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Depreciation must be subtracted from the calculation of gross domestic product
a. True b. False Indicate whether the statement is true or false
An increase in the price level is called
a. the Consumer Price Index b. inflation c. deflation d. stagflation e. nominal pricing
The new classical model implies that a
a. budget surplus will effectively retard inflation emanating from excess demand. b. budget deficit will increase the real interest rate. c. substitution of debt for tax financing will leave aggregate demand and real output unchanged. d. planned budget deficit will be a highly effective tool to combat a recession.
Alan Greenspan argued that a low, stable inflation rate was the best way to achieve
A. low unemployment. B. low interest rates. C. low, stable oil prices. D. strong economic growth.