Real-wage rigidity in the Keynesian efficiency wage diagram of the labor market is depicted by
A) a vertical labor supply curve at the efficient level of employment,
B) a vertical labor demand curve at the efficient level of employment.
C) a horizontal line at the efficiency wage.
D) a steep, positively sloped labor supply curve depicting various efficiency wages at various employment levels.
C
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The author of An Inquiry Into the Nature and Causes of the Wealth of Nations was
A) Duncan Bradstreet. B) Dow Jones. C) John Maynard Keynes. D) Karl Marx. E) Adam Smith.
In marginal cost pricing, the natural monopoly would have to set price equal to
A) AFC. B) AVC. C) ATC. D) MC.
Aggregate demand's downward-sloping character reflects three principal influences as shown in which of the following?
a. People's desire to maintain real wealth holdings, the interest rate, and international trade. b. People's desire to increase the price level, the interest rate, and the economic growth effect. c. The interest rate, the economic growth effect, and international trade. d. Cost-pull inflation, demand-pull inflation, and the need to maintain real wealth holdings. e. Recession phases of the business cycle, upturns, and downturns.
After the Fed sells a government bond, which of the following is the impetus for the money supply process that follows?
a. Banks now have excess reserves. b. Banks now have deficient reserves. c. Banks must print money to purchase the bonds. d. Banks now have to hold more required reserves. e. Banks now must be regulated closely.