Inflation can only be caused by an increase in aggregate demand
a. True
b. False
Indicate whether the statement is true or false
False
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If a firm employs an extra unit of labor, the additional product generated by employing the extra unit of labor is
A) the marginal physical product of labor. B) the diminished marginal product. C) the outside edge. D) total product.
The Employment Act of 1946 directed the federal government to pursue the three objectives of maximizing employment, production, and purchasing power
a. True b. False
When something happens to the economy, monetarists ask two questions:
A. What does this do to government spending, and what does it do to tax revenues? B. What does this do to real GDP, and what does it do to the price level? C. What does this do to investment spending, and what does it do to net exports? D. What does this do to the money supply, and what does it do to velocity?
Health insurance companies face an asymmetric information problem because:
A. insurance companies have superior information concerning the risk of illness or injury of those insured. B. buyers have superior information concerning their risk of illness or injury. C. the insurance companies and buyers both have equal information concerning the risk of illness or injury of those insured. D. the probability of becoming ill or injured is unrelated to the insured person's occupation.