The aggregate demand curve or schedule shows the relationship between the total demand for output and the ________.
A. income level
B. price level
C. interest rate
D. real GDP
Answer: B
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Winnie's Car Wash is a perfectly competitive firm. The table above shows Winnie's total product schedule. If the price of a car wash is $4, and Winnie maximizes his profit when he employs 4 workers, the wage rate is
A) $90 per day. B) $30 per day. C) $70 per day. D) $50 per day.
In examining incomes of free southerners prior to the Civil War, Walton and Rockoff conclude that, compared with northerners, free southerners were ______
a. at least 50% poorer than northerners. b. far richer than northerners, except in the old South. c. doing fairly well, even in the old South. d. far richer than northerners but a downward trend was noticeable.
Which of the following would macroeconomics study?
a. a general rise in prices b. a decline in coffee prices c. the success rate of sandwich shops d. the work habits of students
According to the Keynesian model, the short-run aggregate supply (SRAS) curve is horizontal when
A. there are unemployed resources and prices do not fall when aggregate demand falls. B. real Gross Domestic Product (GDP) is at full capacity but prices are not flexible. C. prices react to an aggregate demand shock but real Gross Domestic Product (GDP) does not. D. there are no unemployed resources and wages do not change when prices change.