An inflationary gap is the amount by which aggregate expenditures ____ the amount required to achieve full-employment equilibrium GDP.
A. exceed
B. equal
C. fall short of
D. are greater than
Answer: A
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An increase in the marginal income tax rate will increase the quantity of labor supplied.
Answer the following statement true (T) or false (F)
As the number of firms in an oligopoly grows, the industry approaches a level of output ________ the competitive level and ________ the monopoly level.
a. more than, less than b. less than, equal to c. less than, more than d. equal to, more than
The existence of a lender of last resort creates moral hazard for bank managers because:
A. they have an incentive to take too much risk in their operations. B. they are less likely to apply for a direct loan from the central bank. C. officials are likely to undervalue the bank's portfolio of assets. D. banks seek loans from the central bank only after exploring other options.
All of the following describe trends in U.S. labor markets except:
A. substantial growth in the level of employment in the United States since 2000. B. growing wage inequality in the United States in recent decades. C. a slowdown in real wage growth since the 1970s. D. substantial growth in real wages during the last century.