Which of the following is likely to be a government objective?
a) Lower unemployment
b) Negative economic growth
c) Very high inflation
d) A recession
Answer: a) Lower unemployment
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In the RBC model, the importance of "intertemporal substitution" of labor supply is ________, which results in a rather ________ labor supply curve
A) denied, flat B) denied, steep C) emphasized, flat D) emphasized, steep
If the government wants to decrease the quantity consumed of soda by 30%, what percentage of tax would they have to levy on soda consumption?
a. 10% b. 20% c. 30% d. 40%
Which of the following is not an aspect of Keynesian economics?
A) Wages and prices tend to be inflexible downward. B) Supply does not necessarily generate its own demand. C) The interest rate is important in determining the level of investment, but not as important as other variables. D) Unemployment above natural unemployment is always a brief and temporary phenomenon.
A publicly traded firm has 4 million shares of stock outstanding, with a current share price of $50. The value of its plant and equipment is $250 million. Its profit annually is $50 million. Tobin’s q for this firm is
a) 0.75 b) 0.80 c) 1.00 d) 1.20 e) 1.25