As the quantity of labor employed increases, the production functions exhibits a
A) positive, linear relationshi
B
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Use the following graphs to answer the next question.
In the graphs, the numbers in parentheses near the AD1, AD2, and AD3 labels indicate the level of investment spending associated with each curve. All figures are in billions. The economy is at point Y on the investment demand curve. Given these conditions, what policy should the Fed pursue to achieve a noninflationary, full-employment level of real GDP?
A. Increase aggregate demand from AD3 to AD2. B. Increase interest rates from 4% to 8%. C. Decrease the money supply from $225 billion to $150 billion. D. Make no change in monetary policy.
People will take better care of their health if there is more health care available.
A. True B. False C. Uncertain
How often should a firm address 'social responsibility'?
A) never. B) all the time. C) once a year. D) over the long-run.
The Lucas supply function states that real output can change from its fixed level
A. only if there is a positive price surprise. B. only if there is a negative price surprise. C. only if there is no price surprise. D. Both A and B are possible.