Suppose an increase in government spending stimulates real GDP without affecting the price level. What is the relevant range of the aggregate supply curve in this case?
a. The classical range.
b. The intermediate range.
c. The Keynesian range.
d. The monetarist range.
c
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What is the law of diminishing returns? Why is this proposition called a "law"?
What will be an ideal response?
A tradeoff between inflation and unemployment is shown directly by the __________ curve
A) Fisher B) Phillips C) Friedman D) aggregate demand
In recent years, the ratio of earnings of the typical U.S. college graduate to the earnings of the typical high school graduate without additional education has
a. risen as the demand for skilled labor has increased relative to the demand for unskilled labor. b. risen as the demand for skilled labor has decreased relative to the demand for unskilled labor. c. fallen as the demand for skilled labor has increased relative to the demand for unskilled labor. d. fallen as the demand for skilled labor has decreased relative to the demand for unskilled labor.
For a monopolistic competitor:
A. P = MC. B. P > MR. C. MR > MC. D. P = MR.