Keynes was concerned about an implication of his consumption theory: that as an economy becomes more prosperous, its saving rate becomes too ________ to sustain that prosperity. Such a long-term trend in the U.S
saving rate is ________ in the time-series data. A) large, found
B) large, not found
C) small, found
D) small, not found
B
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Which of the following is assumed to be constant along a per-worker production function?
a. Output per worker b. Capital per worker c. Level of technology d. Amount of capital e. Amount of output
Quick Buck and Pushy Sales produce and sell identical products and face zero marginal and average cost. Below is the market demand curve for their product.
Suppose Quick Buck and Pushy Sales decide to collude and work together as a monopolist with each firm producing half the quantity demanded by the market at the monopoly price. If Quick Buck cheats by reducing its price to $1 and Pushy Sales matches the price cut, then if consumers are evenly split between the two firms, what will be Quick Buck's economic profit?
A. $3,000 B. $2,000 C. $1,000 D. $1,500
Answer the following statement(s) true (T) or false (F)
1. It is rare that actual and potential real GDP are equal. 2. The potential output in the United States grows over time, so the LRAS is shifting leftward over time. 3. Cost-push inflation causes an inflationary gap. 4. The classical school is associated with French economist John Maynard Keynes. 5. Economists continue to debate the actual shape of the short-run aggregate supply curve.
If velocity and output are fixed at 5 and 400, respectively, and the price level is 2, then the money supply is
A) 4,000. B) 200. C) 160. D) 40.