Potential GDP refers to the level of
A) real GDP in the long run.
B) nominal GDP in the long run.
C) real GDP in the short run.
D) nominal GDP in the short run.
Answer: A
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An increase in nominal GDP will
A. decrease the transactions demand and the total demand for money. B. decrease the transactions demand for money but increase the total demand for money. C. increase the transactions demand and the total demand for money. D. increase the transactions demand for money but decrease the total demand for money.
The purpose of the "draft" developed by owners' associations in many professional sports is to
A) assure all players at least a minimum salary. B) control competition among owners for the services of players. C) control competition among players. D) control competition between players and owners. E) keep all teams at roughly equal competitive levels.
Sam's manufacturing plant recently decided to pay its workers 14% more than the current market wage for equivalent skills. Such a management decision can be due to
a. noncompetitive labor markets b. labor surpluses c. the need for better skills d. efficiency wages e. community desires
According to the Kahneman-Tversky value function,
A. small gains should be combined with large gains. B. small gains should be subtracted from large losses. C. small gains should be segregated from large losses. D. small losses should be segregated from large losses.