An increase in ________ decreases the quantity of money people want to hold
A) the price level
B) real GDP
C) the interest rate
D) the quantity of money
C
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Technological change that increases the marginal productivity of labor in the classical model would cause
a. labor demand, output and the price level to rise. b. labor demand to fall, the price level to fall, and output to rise. d. labor demand, output and employment to rise. c. output to rise but labor demand to fall.
Refer to Scenario 14.4. How much will the monopsonist pay each worker?
A) 0 B) 78 C) 83 D) 92 E) 100
Gross private domestic investment includes business:
a. purchases of capital goods, all new construction, and purchases of consumer durable goods. b. purchases of capital goods, all new construction, and inventory investment. c. purchases of capital goods, all new commercial construction, and inventory investment. d. purchases of capital goods, all new residential construction, and inventory investment. e. purchases of all types of durable goods, all new construction, and inventory investment.
If net exports fall $40 billion, the MPC is 9/11, and there is a multiplier effect but no crowding out and no investment accelerator, then
a. aggregate demand falls by 2 x $40 billion. b. aggregate demand falls by 11/2 x $40 billion. c. aggregate demand falls by 11/9 x $40 billion. d. aggregate demand falls by 9/11 x $40 billion.