When the aggregate demand and short-run aggregate supply curves intersect at a level of real GDP which exceeds potential GDP, what will occur?
What will be an ideal response?
the aggregate supply curve shifts leftward because the money wage rate rises
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If the wage rate drops, an employer will be willing to hire more workers, ceteris paribus.
Answer the following statement true (T) or false (F)
Suppose Campus Books, a profit-maximizing firm, is the only supplier of the textbook for a given class. The marginal cost of supplying each book is constant and equal to $10, and Campus Books has no fixed costs. The table shows the reservation prices of the eight students enrolled in the class. CustomerReservation Price($/Book)Q60R54S48T42U36V30W24X18If Campus Books is permitted to charge 2 prices, and the bookstore knows customers with a reservation price above $30 never bother with coupons, whereas those with a reservation price of $30 or less always use them, then what will be the bookstore's total economic profit?
A. $154 B. $150 C. $130 D. $158
When did major currencies begin floating against each other, ending the Bretton Woods system?
What will be an ideal response?
Which of the following is among the arguments in favor of using government intervention to reduce income inequality?
A. Large income differences eventually lead to political strife and will undermine support for a market economy. B. Government intervention is more effective in promoting creativity and hard work than the hope of higher earnings. C. The income distribution statistics understate inequality because they fail to take economic mobility into account. D. Taking money away from individuals who have earned it is unfair and immoral.