Which of the following statements is true?
a. The four phases of the business cycle, in order, are: peak, recovery, trough, recession.
b. When unemployment is rising then real GDP is rising.
c. The economic problem typically associated with a recovery is rising unemployment.
d. Full employment exists in an economy when the unemployment rate equals the sum of frictional, and structural unemployment rates.
d
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If opportunity costs are ________, the production possibilities frontier would be graphed as a negatively sloped straight line
A) increasing B) constant C) decreasing D) negative
The parent company would want to reward managers based on division revenues because
a. The managers usually have the least information about their divisions b. It would incentivize the otherwise clueless managers about the daily activities of their divisions c. The managers usually have the best information about how to run their divisions d. None of the above
A maximum wage law, as opposed to a minimum wage law, would be considered a
A. price ceiling. B. price floor. C. tax on businesses. D. sales tax.
An economy has no international trade and no income taxes. If lump-sum taxes increase by $40 billion and the marginal propensity to consume was equal to 0.7, then in the short run while prices are constant, real GDP
A) decreases by $93 billion. B) increases by $28 billion. C) increases by $12 billion. D) decreases by $28 billion.