If Tony receives a pay raise and the price effect outweighs the income effect on his labor supply decisions, he will:
A. work more hours.
B. work less hours.
C. work the same hours no matter what.
D. quit and not work at all.
A. work more hours.
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Suppose the economy is producing above potential GDP and the Federal Reserve implements the appropriate change in monetary policy, but not until after the economy has started to slow down on its own. In this situation there is a real danger that
A) the Fed's expansionary policy will result in too small of an increase in GDP. B) the Fed's expansionary policy will result in too large of an increase in GDP. C) the Fed's contractionary policy will result in too large of a decrease in GDP. D) the Fed's contractionary policy will result in too small of a decrease in GDP.
If the supply curve decreases while the demand curve remains unchanged, the equilibrium price would increase
a. True b. False Indicate whether the statement is true or false
If the GDP gap is negative, then:
A. the inflation rate is rising. B. actual GDP is less than potential GDP. C. potential GDP is less than actual GDP. D. the unemployment rate is falling.
The efficient quantity of a public good occurs when the marginal cost of providing that good equals the sum of the marginal benefits to all individuals
What will be an ideal response?