According to Keynes' fixed money wage theory, when the price level is higher than expected the real wage is ____ than expected and unemployment is ______ than expected
a. lower; lower
b. higher, higher
c. lower; higher
d. higher; lower
C
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Describe ways that governments can promote faster economic growth
What will be an ideal response?
The value of an additional baker to a bakery is equal to the
A) price of bread. B) value of marginal product of the baker. C) baker's marginal productivity in terms of loaves of bread. D) marginal cost of making an additional loaf of bread.
Any output combination inside a production possibilities frontier is associated with unused or underutilized resources
Indicate whether the statement is true or false
In the fourteenth century it is estimated that deaths resulting from the bubonic plague reduced the population by about a third. Assuming diminishing returns, the decrease in population should have
a. increased productivity and real GDP per person. b. increased productivity but decreased real GDP per person. c. increased real GDP per person, but decreased productivity. d. decreased productivity and real GDP per person.