Use the following graph to answer the next question.
Which of the following factors will shift AD1 to AD2?
A. An increase in national incomes abroad.
B. An increase in real interest rates.
C. A decrease in the value of financial assets.
D. A decrease in the general price level.
Answer: A
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Which of the following groups makes it a point to emphasize that inflation occurs when the annual rate of growth of the money supply exceeds the annual rate of growth of full- employment real GDP?
a. the classical school b. the Keynesian school c. the neo-Keynesian school d. the rational expectations school e. supply-siders
Most firms have
a. no monopoly pricing power. b. some monopoly pricing power. c. absolute monopoly pricing power. d. the ability to earn monopoly profits.
Refer to the table above. What is the average monthly wage?
A) $612 B) $650 C) $558 D) $450
Marginal product:
A. diminishes at all levels of production. B. may initially increase, then diminish, but never become negative. C. may initially increase, then diminish, and ultimately become negative. D. is always less than average product.