The position of the long-run aggregate supply curve corresponds to the economy's:
A. full-employment real GDP.
B. maximum possible level of employment.
C. natural level of personal consumption expenditure.
D. maximum possible level of personal consumption expenditures.
Answer: A
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Economists have shown that when the ultimatum game experiment is carried out, both allocators and recipients act as if fairness is important
Indicate whether the statement is true or false
Less demand in the economy may increase unemployment; this may lead to less spending which may reduce demand further. This process is called:
a) The upward accelerator b) The downward multiplier c) The upward PPF d) The downward mpc
If the average product of 20 workers is 100 bushels of wheat and the average product of 21 workers of wheat is 99 bushels of wheat, then the marginal product of the 21st worker was
A) -1 bushel of wheat. B) 5 bushels of wheat. C) 79 bushels of wheat. D) 99 bushels of wheat.
In general, monetary policy has a longer ________ lag than fiscal policy but shorter ________ lag.
A. response; implementation B. recognition; response C. implementation; recognition D. implementation; response