A single currency area requires
A) mobile labor and synchronized business cycles.
B) immobile labor and synchronized business cycles.
C) immobile labor and mobile capital.
D) a political union.
E) mobile labor and unsynchronized business cycles.
A
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If the price of carrots is below the equilibrium price, the
A) quantity supplied of carrots exceeds the quantity demanded, and a shortage exists. B) quantity demanded of carrots exceeds the quantity supplied, and a shortage exists. C) quantity demanded of carrots exceeds the quantity supplied, and a surplus exists. D) quantity supplied of carrots equals the quantity demanded. E) quantity supplied of carrots exceeds the quantity demanded, and a surplus exists.
The higher the marginal income tax rate, the
a. higher the MPC out of disposable income. b. lower the MPC out of disposable income. c. higher the autonomous expenditure multiplier. d. lower the autonomous expenditure multiplier. e. None of the above
All of the following are macroeconomic injections into the circular flow except:
a. Consumption b. National government spending c. State and local government spending d.All of the above. e. None of the above.
Which of the following statements does not apply to a market economy?
a. Firms decide whom to hire and what to produce. b. The "invisible hand" usually maximizes the income of society as a whole. c. Households decide which firms to work for and what to buy with their incomes. d. Government policies are the primary forces that guide the decisions of firms and households.