Which of the following statements is correct?
a. Neither economic theory nor evidence from the U.S. economy suggests that there is a close link between productivity and real wages.
b. Economic theory suggests that there is a close link between productivity and real wages, but evidence from the U.S. economy fails to confirm that link.
c. Evidence from the U.S. economy suggests a close link between productivity and real wages, but economic theory provides no basis for such a link.
d. Both economic theory and evidence from the U.S. economy suggest that there is a close link between productivity and real wages.
d
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In the above figure, suppose the economy is initially on the demand for money curve MD1. What is the effect of an increase in real GDP?
A) The demand for money curve would shift rightward to MD2. B) The demand for money curve would shift leftward to MD0. C) There would be a movement upward along the demand for money curve MD1. D) There would be a movement downward along the demand for money curve MD1.
The Consumer Price Index compares the:
a. prices of all goods and services in the economy compared to the prices of those goods and services in a base year. b. prices of consumer goods and services that a household purchases to the prices of those goods and services purchased in a base year. c. prices of producer goods and services that are made for consumers to the prices of those goods and services in a base year. d. prices of goods and services that are purchased by producers to the prices of those goods and services in a base year. e. prices of goods and services that are purchased by consumer manufacturers to the prices of those goods and services in a base year.
In general, lower marginal tax rates provide incentives to
A. Produce more output. B. Work less. C. Find more tax loopholes. D. Invest less.
A public good:
a. is rivalrous in consumption and excludable b. in nonrivalrous in consumption and nonexcludable c. must be produces by government d. both b. and c.