Suppose there is a shortage in the market for loanable funds. Is the interest rate above or below its equilibrium level? How do desired saving and desired investment at this interest rate compare?
The interest rate is below its equilibrium level. Desired investment is greater than desired saving.
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Refer to the above figure. The shape of the production possibility curve indicates that production of
A) wheat is characterized by increasing costs while the production of beans is characterized by decreasing costs. B) wheat is characterized by decreasing costs while the production of beans is characterized by increasing costs. C) both goods are characterized by increasing costs. D) both goods are characterized by decreasing costs.
In 2012, the U.S. federal government legislation authorized:
A. 152 earmarks totaling $3.3 trillion. B. 2,300 earmarks totaling $8.7 billion. C. 10,160 earmarks totaling $19.6 billion. D. 11,700 earmarks totaling $16.9 billion.
Productivity growth is usually an indicator of
A. future increases in the unemployment rate. B. the increase in the health and prosperity of the economy. C. the possibility of inflation. D. the decline in the health and prosperity of the economy.
________ of unemployment during ________ make it easier for workers to ________ wages
A) High levels; a recession; accept lower B) Low levels; an expansion; accept lower C) Low levels; a recession; negotiate higher D) High levels; an expansion; negotiate higher