Macroeconomic equilibrium is best described as a situation in which:
a. the slope of the aggregate demand curve equals the slope of the aggregate supply curve.
b. quantity demanded exceeds quantity supplied
c. quantity demanded equals quantity supplied at a unique price level.
d. quantity supplied exceeds quantity demanded at a unique price level.
e. quantity supplied equals quantity demanded at a unique price level.
e
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When supply decreases and the supply curve shifts to the left, equilibrium price ________ and equilibrium quantity ________
A) increases; decreases B) decreases; increases C) decreases; decreases D) increases; increases
Which of the following income maintenance programs is designed to establish nationwide minimum incomes for the aged, the blind, and the disabled?
A) the Old-Age Survivors' and Disability Insurance (OASDI) program B) the Supplemental Security Income (SSI) program C) the Temporary Assistance to Needy Families (TANF) program D) the food stamps program
Given an opportunity cost of 10 bicycles per 1 sewing machine in Germany and 20 bicycles per 2 sewing machines in Hungary,
a. Neither country has a comparative advantage in the production of either good. b. Germany has a comparative advantage in the production of sewing machines. c. Germany has an absolute advantage in the production of sewing machines. d. Hungary has an absolute advantage in the production of bicycles. e. Hungary produces more bicycles than Germany does.
A competitive employer is using labor in such an amount that labor's MRP is $10 and its wage rate is $8. This firm:
A. should hire more labor because this will increase profits. B. should hire more labor, although this may either increase or decrease profits. C. is currently hiring the profit-maximizing amount of labor. D. is selling its product in an imperfectly competitive market.