Refer to Figure 7.1. In equilibrium, the real wage is ________ and the amount of labor employed is ________
A) Y; B B) X; C C) Y; C D) Z; C
A
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A government policy that is consistent with real business cycle theory would be for
A) government to vary its spending in response to shocks to total factor productivity. B) the monetary authority to expand and contract the nominal money supply in response to shocks to total factor productivity. C) government to smooth out tax distortions over time. D) government to vary its lump-sum tax collections in response to changes in total factor productivity.
In factor markets,
a. individual consumers are the demanders b. equilibrium cannot be defined c. there is an excess supply d. firms are the demanders e. labor and capital are viewed by firms as perfect substitutes
Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4Refer to Figure 2.4. The economy moves from Point A to Point D. This could be explained by
A. an increase in economic growth. B. a change in society's preferences for motorcycles versus hybrid cars. C. a reduction in unemployment. D. an improvement in technology.
A profit-maximizing monopolistically competitive firm ________ MR = MC.
A. is completely efficient when B. sells product at the price where C. produces where D. shuts down when