Real GDP equals $12 trillion and aggregate hours equals 300 billion hours. What does labor productivity equal?
What will be an ideal response?
Labor productivity is (real GDP)/(aggregate hours), so labor productivity equals ($12 trillion)/(300 billion hours) = $40 per hour.
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A change in ________ creates a movement along the aggregate demand curve, while a change in ________ shifts the aggregate demand curve
A) expected profits; tax rates B) the price level; government expenditures C) foreign income; the foreign exchange rate D) real wealth; human capital
The international trade effect states that
A) an increase in the price level will raise exports. B) an increase in the price level will lower net exports. C) an increase in the price level will raise net exports. D) an increase in the price level will lower imports.
A decrease in the currency exchange rate would shift the aggregate demand curve rightward, resulting in a higher equilibrium income and price level in the long-run
Indicate whether the statement is true or false
The only way that consumption can be taxed is through a general sales tax
a. True b. False