The rational expectations hypothesis suggests that if wages and prices are flexible
A. anticipated monetary policy actions can affect nominal variables, but not real variables.
B. growth in the money supply can alter real variables only if the growth is anticipated.
C. unanticipated monetary policy actions can shift the long-run aggregate supply curve but cannot shift the aggregate demand curve.
D. unanticipated monetary policy actions can affect real variables, but not nominal variables.
Answer: A
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In neoclassical growth theory, technological progress is the key to continuous growth in labor productivity
Indicate whether the statement is true or false
Which of the following is an example of a compensating wage differential?
A) Workers in a dynamite mine receive higher wages than if they worked in other jobs that require the same level of skills. B) Nurse anesthetists are paid less than anesthesiologists (who have medical degrees). C) In the market for lawyers, top graduates from the top programs earn starting salaries that are significantly higher than the starting salaries earned by lower-ranked graduates from the lower-ranked programs. D) Popular movie stars like George Clooney command much higher salaries than other talented but lesser-known actors.
Typically, total utility derived decreases as more of a good is consumed
a. True b. False Indicate whether the statement is true or false
Assume a simple macroeconomic model. When inventories rise unexpectedly,
a. income is above its equilibrium value. b. income will rise until it reaches its equilibrium value. c. total spending is higher than total output. d. All of the above.