Sticky wages leads to a positive relationship between the actual price level and the quantity of output supplied in
a. both the short and long run.
b. the short run, but not the long run.
c. the long run, but not the short run.
d. neither the short nor the long run.
b
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At an interest rate of 6%, how much will need to be invested today to have $10,000 in 5 years?
A) $5,000 B) $7,473 C) $10,000 D) $13,382
How do we describe it when a person who's 45 years old saves a large amount of her income for retirement?
Suppose that electricity producers create a negative externality equal to $5 per unit. Further suppose that the government gives a $5 per-unit subsidy to producers. What is the relationship between the equilibrium quantity and the socially optimal quantity of electricity to be produced?
a. They are equal. b. The equilibrium quantity is greater than the socially optimal quantity. c. The equilibrium quantity is less than the socially optimal quantity. d. There is not enough information to answer the question.
Through war, many of the factories in country 1 are destroyed and many of its people are killed. As a result, the country's
A) production possibilities frontier (PPF) after the war has probably shifted to the right compared to its PPF prior to the war. B) PPF after the war has probably shifted to the left compared to its PPF prior to the war. C) PPF after the war is probably the same PPF as before the war. D) ability to produce goods and services has increased. E) b and d