A reduction in nominal wages will cause which of the following?
A. a shift of both the short-run and long-run aggregate supply curves
B. a leftward shift in the short-run aggregate supply curve
C. a movement along the short-run aggregate supply curve
D. a rightward shift in the short-run aggregate supply curve
Answer: D
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Suppose an economy consists of 500,000 individuals 16 years and older, 260,000 are employed, and 21,000 are unemployed but actively seeking work. In this example the labor force is
A) 239,000. B) 260,000. C) 281,000. D) 500,000.
Excessive volatility refers to the fact that
A) stock returns display mean reversion. B) stock prices can be slow to react to new information. C) stock price tend to rise in the month of January. D) stock prices fluctuate more than is justified by dividend fluctuations.
economic analysis indicates that high tax rates will
What will be an ideal response?
You are the manager of a firm that sells its product in a competitive market at a price of $40. Your firm's cost function is C = 60 + 4Q2. The profit-maximizing output for your firm is:
A. 5. B. 10. C. 4. D. 15.