According to new classical economists, the:
A. short-run demand for labor curve is vertical.
B. short-run aggregate demand curve is vertical.
C. long-run aggregate supply curve is horizontal.
D. long-run aggregate supply curve is vertical.
D. long-run aggregate supply curve is vertical.
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Which is NOT a reason that an aggregate supply curve might slope upward to the right?
A. As production increases, people want to buy less. B. As production increases, wages are bid up. C. As production increases, interest rates rise. D. As prices rise, producers expand output.
We cannot predict the effect on the market clearing price, but know that the equilibrium quantity will increase when
A. supply and demand for a product simultaneously increase. B. supply decreases and demand increases. C. supply increases and demand decreases. D. supply and demand for a product simultaneously decrease.
When government outlays are less than tax revenues, the government has
A) a budget with a negative debt. B) a budget deficit. C) a budget with a positive balance. D) an illegal budget because outlays must exceed tax revenues. E) a budget surplus.
Which of the following concepts is not included in the study of macroeconomics?
a. The unemployment level b. The inflation rate c. The real income d. The profit-maximizing condition e. The role of government