The values on the axes of the long-run aggregate supply diagram are
A. real GDP and nominal GDP.
B. real GDP per year and the price level.
C. real GDP and interest rates.
D. nominal GDP and the price level.
Answer: B
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Leisure being a normal good is neither necessary nor sufficient for labor supply to slope up.
Answer the following statement true (T) or false (F)
The figure above shows the U.S. production function. How would an increase in income taxes be shown in the figure?
A) a movement from point C to point B B) a movement from point A to point B C) an upward shift or rotation of the production function D) a downward shift or rotation of the production function E) None of the above because the effects of an increase in taxes cannot be shown in the figure.
The best description of US economic growth during the 1800s is:
a. The annual growth rate for the 20 years preceding the Civil War was about the same as the annual growth rate from 1870-1899 while the growth rate during the Civil War was higher than either period. b. The annual growth rate for the 20 years preceding the Civil War was lower than the annual growth rate from 1870-1899 c. The annual growth rate for the 20 years preceding the Civil War was greater than the annual growth rate from 1870-1899
Statistical studies suggest that the cost of direct controls for any target level of pollution is
A. much higher than the cost of taxes on emissions. B. about the same as the cost of taxes on emissions. C. lower than the cost of taxes on emissions. D. impossible to compare to the cost of taxes on emissions.