In macroeconomics, the long run refers to:
A. how long it takes for output decisions to adjust to changes in economic conditions.
B. how long it takes for prices of inputs to fully adjust to changes in economic conditions.
C. how long it takes for fixed inputs to become variable.
D. the time period when sticky wages are in place.
Answer: B
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The optimal amount of studying is determined by comparing:
A. total benefit and the total cost of studying. B. marginal benefit and the total benefit of studying. C. marginal benefit and the total cost of studying. D. marginal benefit and the marginal cost of studying.
If the economy suffers a recession for reasons unrelated to fiscal policy, the deficit should rise and
A. inflation should fall. B. interest rates should fall. C. real GDP should fall. D. all of the above are correct.
If the number of people with the skills necessary to perform a job decreases, labor ________ shifts to the ________.
A. demand; left B. demand; right C. supply; left D. supply; right
The Sarbanes-Oxley Act of 2002
A) created the Consumer Financial Protection Bureau to be housed in the Federal Reserve. B) mandates that firms raise funds for expansion only through the sale of stock or from bank loans, but not from the sale of corporate bonds. C) requires that CEOs personally certify the accuracy of financial statements. D) established the Financial Stability Oversight Council to identify risks to the financial system.