Everything else held constant, an autonomous tightening of monetary policy will cause
A) the quantity of aggregate demand to increase.
B) the quantity of aggregate demand to decrease.
C) aggregate demand to increase.
D) aggregate demand to decrease.
D
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Economies of scale are created by greater efficiency of capital and by
A) longer chains of command in management. B) better wages for labor. C) smaller plant sizes. D) increased specialization of labor.
Under monopsony, the marginal factor cost of a worker is equal to
A) the additional worker's wage rate only. B) the additional worker's wage rate plus the increase in the wages of all other existing workers. C) the increase in the wages of all other existing workers. D) the difference between the worker's wage rate and the lower wage rate received by workers who have already been hired.
One-fifth of the population, rank ordered by income, is
A. An income quintile B. An earnings-population quintile. C. A population quintile. D. None of the choices are correct.
An increase in government budget deficits will necessarily be associated with an worsening of the current account balance
Indicate whether the statement is true or false