Which of the following is a factor that determines the shape of the aggregate demand curve?
A) the real-balance effect B) the wage effect
C) the nominal-balance effect D) the price level effect
A
You might also like to view...
When there are credit market frictions, Ricardian equivalence may not hold because
A) consumers cannot understand the implications of the government budget constraint. B) a tax cut in the present with a future increase in taxes works effectively like a loan. C) an increase in government saving is matched one-for-one by a decrease in private saving. D) social security is fully-funded.
Suppose MPL = 20 and MPK = 40 and the rental rate on capital is $10 . If the level of production is currently efficient, the wage rate must be
a. $10 b. $5 c. $20 d. $40
What is a government-imposed maximum price at which a good can be sold?
a) a price floor b) a price ceiling c) a price support d) a price equilibrium
Weighted least squares estimation is used only when _____.
A. the dependent variable in a regression model is binary B. the independent variables in a regression model are correlated C. the error term in a regression model has a constant variance D. the functional form of the error variances is known