Refer to Figure 6.3. If the market is in equilibrium, the producer surplus is:
A. area ABC.
B. area BCD.
C. zero.
D. area ACD.
Answer: B
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The Fed's policy decisions have an important influence on
a. inflation in the long run and employment and production in the short run. b. inflation in the long run and employment and production in the long run. c. inflation in the short run and employment and production in the short run. d. inflation in the short run and employment and production in the long run.
Which of the following shifts aggregate demand to the right?
a. a decrease in the money supply b. increases in the profitability of capital due perhaps to technological progress. c. the repeal of an investment tax credit d. a decrease in the price level
According to the Kahneman-Tversky value function,
A. small gains should be combined with large gains. B. small gains should be subtracted from large losses. C. small gains should be segregated from large losses. D. small losses should be segregated from large losses.
How is it established that someone is "actively looking for work" in order to count her as unemployed?
A. She must provide copies of all of her job search-related correspondence B. She must have taken some action to find a job in the last four weeks C. She must say that she would be willing to take a job if offered one D. She must have gone on at least one job interview in the past year