The "A" in the neoclassical production function incorporates
a. new inventions.
b. changes in efficiency.
c. more productive capital.
d. more efficient labor organization.
e. all of the above.
E
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Explain the differences between aggregate demand shocks and aggregate supply shocks
What will be an ideal response?
According to William Niskanen's model of bureaucracy, Congress tends to approve a bureau's budget at a level where
a. the marginal value of the last unit of the bureau's output is greater than the marginal cost. b. the marginal cost of the last unit of the bureau's output is greater than the marginal value. c. the marginal value of the last unit of the bureau's output equals the marginal cost. d. the marginal cost of the last unit of the bureau's output is zero.
In terms of the musical chairs analogy in the text, which of the following is a description of structural unemployment?
A. There are too many chairs. B. There are enough chairs, but it takes time to find one. C. There are too few chairs. D. There are enough chairs, but some are not the right size.
Which of the following government programs would be most appropriate to counteract cyclical unemployment?
A. More job training programs. B. Year-round school. C. Increased job placement services. D. Greater government expenditures to increase GDP.