According to Keynes, real saving and real consumption spending are functions of
A. current educational attainment.
B. current real disposable income.
C. economic expectations.
D. an individual's future earning potential.
Answer: B
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The intertemporal substitution effect of the price level on aggregate demand
A) is the same as the real wealth effect. B) is one reason that the aggregate demand curve has a negative slope. C) explains why aggregate demand increases when the amount of money increases. D) is one reason that the aggregate demand curve has a positive slope.
Which of the following markets is closely related to macroeconomics?
a. Cattle futures market. b. Fulton's fish market. c. Skilled labor market. d. Nation's unemployment rate.
If the ratio of marginal revenue product to marginal factor cost for labor is greater than that for capital, then:
a. the producer can maximize profit by hiring more units of capital. b. the producer suffers losses by hiring more units of labor. c. the producer does not alter the resource allocation. d. the producer can maximize profit by hiring more units of labor. e. the producer will earn above normal profit by hiring less units of labor.
Which of the factors below contributed to the collapse of the Phillips curve in the 1970s?
a. Economic research proved there was no relationship between inflation and unemployment rates. b. The U.S. government was running triple-digit deficits in the 1970s, compounding the normal shifts in aggregate demand. c. The 1970s were full of adverse supply shocks such as the oil price increases of 1973-1974. d. The aggregate demand curve shifted to the left at the end of the Vietnam War.