The ________ impact of a negative aggregate demand shock is ________ when the government does not target the deficit because targeting the deficit causes further negative aggregate demand shocks.
A. adverse; reduced
B. neutral; reduced
C. adverse; increased
D. neutral; increased
Answer: A
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A Herfindahl index value of 20, for a particular industry, indicates that the industry is most likely to be:
a. perfectly competitive. b. highly concentrated. c. oligopolistic. d. monopolistic. e. made up of illegal firms.
Suppose there is a simultaneous central bank sale of bonds and tax increase. We know with certainty that this combination of policies must cause
A) an increase in the interest rate (i). B) a reduction in i. C) an increase in output (Y). D) a reduction in Y.
A sharp increase in the price of beef that causes consumers to switch to chicken is predicted to ________ the real wage and ________ employment of unskilled workers in a poultry processing plant.
A. increase; increase B. increase; not change C. increase; decrease D. decrease; decrease
If a firm adds one more worker and total output increases from 100 to 120, the marginal product of labor equals
a. 220. b. 120. c. 100. d. 20.