An economy's ________ will fall if its real interest rate rises
A) labor supply B) real wage rate C) supply of credit D) real output
D
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Evidence from the time period 1960-1980 indicates that inflation in the United States resulted from
A) an employment target that was set too high. B) the government's inability to sell bonds to the Fed. C) an expansion in the money supply to finance federal government expenditures. D) the excessive sale of government bonds to the public.
Economic activity that is above potential output ________
A) signals that potential output is about to increase B) is not possible C) results from an economic shock to which the economy has yet to adjust fully D) occurs near the trough, rather than the peak, of a business cycle E) none of the above
Critics of affirmative action programs argue that they
a. promote statistical discrimination. b. impair economic efficiency by preventing firms from freely choosing the most productive employee for a particular job. c. are not as efficient as quota systems at hiring women and minorities. d. All of the above are correct.
If the cross-price elasticity between ketchup and hamburgers is ?2.5, a 2 percent increase in the price of ketchup will lead to a:
A. 5 percent drop in quantity demanded of hamburgers. B. 5 percent drop in quantity demanded of ketchup. C. 5 percent increase in quantity demanded of hamburgers. D. 5 percent increase in quantity demanded of ketchup.