Which of the following statements is most true concerning economic policy in the U.S.?
A. Fiscal policymakers tend to focus more on pleasing their constituents and so are willing to sacrifice the short run for the long run.
B. Fiscal policymakers tend to focus on inflation and unemployment while monetary policymakers focus most of their attention on the money supply and the exchange rate.
C. Monetary policy independence is enshrined in the U.S. Constitution.
D. Monetary policymakers tend to have a long view while fiscal policymakers tend to ignore the long-run inflationary ramifications of their actions.
Answer: D
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The demand curve for labor indicates that:
a. as the real wage rate increases, employers will hire more workers. b. as the nominal wage rate increases, employers will hire more workers. c. as the nominal wage rate decreases, the real wage rate increases. d. as the real wage rate increases, employers will hire fewer workers. e. as the real wage rate decreases the nominal wage rate increases.
Suppose at the current level of labor used, MRP = $10 and MFC = $10. To maximize profits, the firm should
A. maintain the current level of labor. B. shut down. C. reduce the level of labor. D. hire more labor.
A firm that acquires a substitute product can try to reduce inter-product cannibalization by
a. Doing nothing b. Repositioning its product or the substitute so that they do not directly compete with each other c. Pricing each product at the same level d. Lowering the prices on both the products
While GDP includes tangible goods such as books and bug spray, it excludes intangible services such as the services provided by teachers and exterminators
a. True b. False Indicate whether the statement is true or false