If nominal wages adjust slowly to changing economic conditions, then a decrease in the price level will cause the real wage rate to rise and employment and real output to fall. This description of the impact of a decrease in the price level on real output is used to explain:
What will be an ideal response?
The positive slope of the short-run aggregate-supply curve.
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Economists generally conclude that because GDP rose as a result of the response to the 2005 Hurricanes, they were really a good thing
a. True b. False
High levels of sales that spur high levels of investment spending is an example of a
a. vicious circle. b. virtuous circle. c. convergence circle. d. divergence circle.
If national saving in a closed economy is greater than zero, which of the following must be true?
a. Either public saving or private saving must be greater than zero. b. Investment is positive. c. d. All of the above are correct.
An example of a good that creates a positive network externality is:
A. social network websites (e.g. Facebook). B. the telephone. C. a workers' union. D. All of these are examples of good that create positive network externalities.