Which of the following will cause an increase in aggregate demand?
A. Restrictive fiscal policy.
B. An increase in the reserve requirement.
C. Expansionary monetary policy.
D. The sale of bonds by the Fed.
C. Expansionary monetary policy.
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If the BLS counted persons that are on active military service in the totals for employment, the labor force, or the working-age population, this would
A) decrease the number of persons in the working-age population. B) decrease the measured unemployment rate. C) decrease the number of persons in the labor force. D) decrease the measured labor force participation rate.
If the CPI is 120 in 1996 and 180 in 2002, then between 1996 and 2002, prices have increased by
A) 180%. B) 80%. C) 60%. D) 50%.
In the middle portion of the long-run average cost curve, the flat portion of the curve indicates that economies of scale have been exhausted. In this situation, called ______________, allowing all inputs to expand does not much change the average cost of production.
a. diseconomies of scale b. constants of production c. average costs of production d. constant returns to scale
A pretzel-stand owner in Chicago hires workers to make hot pretzels and sell them to customers. If the firm is competitive in both the market for pretzels and in the market for pretzel-makers, then it has
a. some control over both the price of pretzels and the wage it pays to its workers. b. no control over the price of pretzels but some control over the wage it pays to its workers. c. some control over the price of pretzels but no control over the wage it pays to its workers. d. no control over either the price of pretzels or the wage it pays to its workers.