In the long run, an increase in aggregate demand:
a. increases the price level and real output, but the effect on the price level is larger.
b. increases the price level and real output, but the effect on output is larger
c. affects only real output.
d. affects only the price level.
e. affects neither the price level nor real output.
d
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If a number equal to the mean of a series of observations is added to the series, the new mean is:
A) smaller than the original mean. B) greater than the original mean. C) same as the original mean. D) either greater or smaller than the original mean depending on the number of observations in the series.
Which of the following is an example of capital income?
A) Wage paid to a worker B) Free lunch at work C) Interest earned on money lent out D) Free parking space in a mall
The lower the amount of unemployment benefits citizens receive, the
A) higher the wage people must be offered before they accept a job. B) the longer people search for jobs. C) higher the opportunity cost of job search. D) the higher the natural unemployment rate. E) lower the opportunity cost of job search.
Rent controls a. are an example of price floors
b. are an example of price ceilings. c. destroy wealth by preventing the movement of apartments to higher-valued use. d. Both b and c