If household saving decreases by $3 million, business saving increases by $1 million, and the government budget deficit increases by $2 million, then private saving ________ and public saving ________.
A. decrease; decreases
B. increases; decreases
C. does not change; increases
D. increases; does not change
Answer: A
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Job search is defined as
A) equivalent to job rationing. B) being paid an efficiency wage. C) the activity of looking for an acceptable, vacant job. D) attending school to increase your employability. E) saying you are looking for a job when you are actually not looking.
When the aggregate demand curve and the short-run aggregate supply curve intersect,
A) the economy is in short-run macroeconomic equilibrium. B) inflation must be increasing. C) structural and frictional unemployment equal zero. D) the long-run aggregate supply curve must also intersect at the same point.
In a monopoly, consumer surplus is
A) larger than under perfect competition. B) is equal to that under perfect competition. C) smaller than under perfect competition. D) None of these choices is true.
In a perfectly competitive market, the price is currently above the minimum of each firm's long-run average total cost curve. Which of the following statements is correct?
a. The long-run average total cost curve will shift upward in the long run. b. Firms will alter their plant size in the short run. c. The market price will fall in the long run. d. The firms must be producing at an output level where price exceeds short-run marginal cost. e. The firms will earn above-normal profit in the long run.