The U.S. macroeconomic experience of the early to mid-1980s is an example of how
A) reducing inflation comes at the cost of a permanent reduction in real GDP.
B) reducing inflation comes at the cost of a temporary reduction in real GDP.
C) reducing inflation can be done costless by simply increasing the money growth rate.
D) increasing the money growth rate affects inflation alone, and not real GDP.
B
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Total expenditure in the United States is equal to consumption expenditure plus investment
A) plus government expenditure on goods and services plus imports of goods and services. B) minus government expenditure on goods and services minus imports of goods and services. C) plus government expenditure on goods and services plus exports of goods and services. D) plus government expenditure on goods and services plus exports of goods and services minus imports of goods and services. E) plus government expenditure on goods and services plus exports of goods and services plus imports of goods and services.
The marginal social cost is
A) equal to the marginal private cost plus the marginal external cost. B) equal to the marginal private cost minus the marginal external cost. C) the same as the marginal private cost. D) the same as the marginal external cost.
In the simplest Keynesian model of the determination of income, interest rates are assumed
A) to be exogenous and to influence desired spending. B) to be endogenous and not to influence desired spending. C) to be endogenous and to influence desired spending. D) to be exogenous and not to influence spending.
If the wage rate rises, labor's share in the total costs of a production process
a. will increase. b. will decrease. c. may increase or decrease depending on the elasticity of demand for the product. d. may increase or decrease depending on the ease of substitution of other inputs for labor.