In the horizontal segment of the aggregate supply curve, when GDP:
A. increases, the price level rises.
B. decreases, the price level falls.
C. increases, the price level does not change.
D. increases, the price level falls.
Answer: C
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The long-standing debate over rules versus discretion in macroeconomics centers on the following statement ________
A) "discretionary policy can lead to bad long-run outcomes but rules lack flexibility in the short-run" B) "the speed with which the self-correcting mechanism in the economy acts is in question" C) "the speed with which unemployment tends to disappear is debatable" D) all of the above E) none of the above
U.S. per capita GDP is roughly how much larger than the world average?
A. Five times as large. B. Twice as large. C. Four times as large. D. Three times as large.
The European equivalent of the U.S.'s market federal funds rate is called the:
A. European discount rate. B. overnight cash rate. C. target refinancing rate. D. overnight repurchase rate.
Joan can make and bottle 8 smoothies an hour. If she works with a friend, they can make and bottle 18 smoothies an hour. What is the marginal product of labor?
(A) 26 (B) 9 (C) 2 (D) 10