Everything else held constant, if workers expect an increase in inflation, ________ aggregate supply ________
A) long-run; increases
B) long-run; decreases
C) short-run; decreases
D) short-run; increases
C
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Suppose that the technology used to manufacture laptops has improved. The likely result would be:
A. a decrease in quantity supplied of laptops. B. an increase in quantity supplied of laptops. C. a decrease in supply of laptops. D. an increase in supply of laptops.
In profit centers
a. Managers are easy to evaluate because there is a simple metric of how well they performed b. Managers typically do not have the information to run their division efficiently c. Managers' decisions rarely affect other divisions d. Managers typically do not have the incentives to run their division efficiently
In the aggregate expenditures model, assume that the MPC is 0.75 . An increase in investment spending of $6 billion would produce an ultimate increase in real GDP of:
a. $0.25 billion. b. $0.75 billion. c. $12 billion. d. $24 billion.
The more rapidly the government creates money to finance its budget deficits, the:
A. smaller the inflation tax and the greater the reduction in the real value of any assets specified in nominal terms. B. smaller the inflation tax and the smaller the reduction in the real value of any assets specified in nominal terms. C. greater the inflation tax and the smaller the reduction in the real value of any assets specified in nominal terms. D. greater the inflation tax and the greater the reduction in the real value of any assets specified in nominal terms.