If the fluctuations in the economy’s real growth rate from year to year are caused primarily by variations in the rate at which aggregate supply increases, then data would show
A. a cyclical relationship between inflation and unemployment.
B. a direct relationship between inflation and unemployment.
C. an inverse relationship between inflation and unemployment.
D. no relationship between inflation and unemployment.
Answer: B
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In the above figure, equilibrium expenditure is equal to
A) $5 trillion. B) $10 trillion. C) $20 trillion. D) $15 trillion. E) None of the above answers is correct
Wally's Widgets currently hires 8 workers. The average product of labor is 15 widgets per day, and the marginal product of a 9th worker is expected to be 13 widgets per day
If the firm hires the 9th worker, what will happen to the average product of labor? Explain.
One of the most important enforcement tools of the Consumer Finance Protection Bureau is:
A) the threat of civil charges against those who violate the laws involving money transfers, foreclosure and many other financial services B) the ability to audit financial firms and institutions C) the ability to initiate new regulations D) the authority to impose criminal penalties
In the long run, a monopolistically competitive firm’s demand curve must be tangent to its average cost curve.
Answer the following statement true (T) or false (F)