Suppose researchers discover a new, lower cost method of producing calculators. As a result, will the supply of calculators increase or decrease?
The supply of calculators will increase.
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Cyclical unemployment is positive when
A) the inflation rate is positive. B) the economy is at the peak of a business expansion. C) the natural rate of unemployment exceeds the actual rate. D) the actual unemployment rate exceeds the natural rate.
Economic theory indicates that the amount consumed of a natural resource depends on
a. the price of the resource. b. consumer income. c. the price of substitute resources. d. all of the above.
An unexpected increase in the price level that temporarily lowers real wages and induces more employment and output in an economy, occurs in
a. nominal-supply theory. b. stagflation. c. misperceptions theory. d. sticky-wage theory.
All of the following are aspects of macroeconomics EXCEPT
A. the production decisions of a pharmaceutical firm. B. the U.S. unemployment rate. C. foreign trade. D. the budget deficit of the United States.