A solution to the budget-gaming problem is
a. Remove all kinks from the compensation schedule
b. Use a straight line pay for performance function
c. Do not base compensation on meeting a particular budget goal
d. All of the above
d
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In the classical model, how do shifts in aggregate demand affect real GDP?
A) Real GDP will remain unchanged. B) Increases in aggregate demand increase real GDP. C) Increases in aggregate demand decrease real GDP. D) Decreases in aggregate demand increase real GDP.
The graph above shows the demand and cost conditions facing a monopolist. What price will the monopolist set?
A. $20 B. $40 C. $60 D. $30 E. $50
The larger the slope of the AE curve, the
a) larger the value of the multiplier b) smaller the value of the multiplier c) less likely that the multiplier will be affected d) more likely the multiplier will be inconsequential
Answer the following questions true (T) or false (F)
1. The unemployment rate is higher with a minimum wage law than it would be without a minimum wage law. 2. Paying efficiency wages are a way for a company to cut costs and become more efficient, and are therefore lower than market wages. 3. The inflation rate measures the average prices of goods and services in the economy.