An economy's production function is Y = A , and the economy's total output in equilibrium is $700 billion. Total labor income in this economy is ________
A) $300 billion
B) $233.3 billion
C) $210 billion
D) $400 billion
E) none of the above
E
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Which of the following might explain a decrease in national saving when the tax rate on savings is reduced?
a. its income effect on saving and its effect on the government budget b. its income effect on saving but not its effect on the government budget c. its effect on the government budget but not its income effect on saving d. neither its income effect on saving nor its effect on the government budget
Can the U.S. dollar and the European euro both appreciate relative to each other?
A. Yes, both countries can gain in this manner. B. Yes, provided the central banks permit it. C. No, unless there is a system of fixed exchange rates. D. No, if one currency appreciates, the other must depreciate.
The level of GDP, all else held constant, will tend to increase when ________.
A. reserve requirements are increased B. there is an increase in the discount rate C. the federal funds rate is increased D. the Federal Reserve buys government securities in the open market
Rick lost his job as a logistics and distribution coordinator nearly three years ago. After a long and failed search, Rick finally gives up and stops looking for a new job
Rick's decision to suspend his job search causes the unemployment rate to ________ and the labor force participation rate to ________. A) increase; stay the same B) increase; increase C) increase; decrease D) stay the same; decrease E) decrease; decrease