The new Keynesian models, are examples of
A) market-clearing, wage rigidity models.
B) non-market-clearing, wage rigidity models.
C) imperfect information, wage rigidity models.
D) perfect information, non-clearing market models.
B
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The town of Little Bohemia has an estimated elasticity of demand for land of 2. What effect would there be to the quantity demanded from a 10% decrease in the price of land due to a tax increase?
What will be an ideal response?
Within the framework of the aggregate expenditures model, what will happen if an economy is operating at a real GDP greater than full-employment real GDP?
a. An inflationary gap exists. b. Real GDP will fall. c. The inventories of firms will rise. d. Firms will cut back on their current rate of output.
Which country has the largest net public debt as a percent of GDP?
a. United States b. France c. Japan d. Canada
Possible problems with consumer interviews include:
A. a non-random sample B. the identification problem C. response bias D. both a and b E. both a and c