An unexpected shift to a more expansionary monetary policy will generally
a. stimulate aggregate demand and real output as soon as the policy is instituted.
b. exert its primary impact on aggregate demand and real output 6 to 15 months in the future.
c. cause inflation in the short run, but expand real output in the long run.
d. increase real interest rates in the short run.
B
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A store remains open from 8 a.m. to 4 p.m. each weekday. The store owner is deciding whether to stay open an extra hour each evening. The owner's marginal benefit
A) is the benefit the owner receives from staying open from 8 a.m. to 5 pm. B) depends on the revenues the owner makes during the day. C) must be greater than or equal to the owner's marginal cost if the owner decides to stay open. D) is the benefit the owner receives from staying open from 8 a.m. to 6 pm.
Under which circumstances could the marginal cost and average variable cost curves be one and the same?
What will be an ideal response?
Given a Cobb-Douglas production function estimate of Q = 1.19L.72K.18 for a given industry, this industry would have:
a. increasing returns to scale b. constant returns to scale c. decreasing returns to scale d. negative returns to scale e. none of the above
Choose the correct statement.
A. The minimum wage results in decreased job search. B. An unregulated labor market cannot allocate the economy's scarce labor resources to the jobs in which they are valued more highly. C. The MSB from labor to workers is leisure foregone. D. In a labor market with an effective minimum wage, the MSB of labor is greater than its MSC.