Compared to an economy's self-correcting mechanism, active contractionary fiscal policy will
a. work more slowly and calmly.
b. work more quickly.
c. have less deflationary effects.
d. have a smaller effect on real GDP.
b
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If the opportunity cost of working outside the home decreases then it is likely that ________, assuming all else equal
A) there will be a rightward shift in the labor supply curve B) there will be an upward movement along the labor supply curve C) there will be a downward movement along the labor supply curve D) there will be a leftward shift in the labor supply curve
Marginal cost is best defined as
A) the extra cost of producing one more unit of output. B) the profit earned from selling one more unit of output. C) the price received from selling one more unit of output. D) equal to producer surplus.
In the above table, when output increases from 8 to 12 units, the marginal cost of one of those 4 units is
A) $1.20. B) $2.00. C) $5.00. D) $15.00.
Suppose the aggregate price level in France is 120, the aggregate price level in Canada is 100, and the real exchange rate between these two countries is 5 . The number of Euros per Canadian dollar is _____
a. 2.5 b. 3.2 c. 6 d. 2.4