The recession that set in after December 2007 can be attributed to:
a. an increase in expenditure on war
b. a decline in home prices and an increase in foreclosures.
c. an increase in terrorist activities.
d. crop failures around the world.
e. an increase in oil prices in the international market.
b
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Which of the following is a macroeconomic question?
A) Why did a leading computer manufacturer establish call centers in India? B) Should the government put a tax on alcohol in an attempt to assist in the funding of support groups like Alcoholics Anonymous? C) Should we have a constitutional amendment requiring the government to implement a national consumption tax to replace the current income tax? D) Why does a pharmaceutical manufacturer try to lower its production costs?
In the traditional Keynesian model, if the government increases spending, then
A) consumption will increase, and so real Gross Domestic Product (GDP) will increase by more than the increase in government spending. B) consumption will decrease, and so real Gross Domestic Product (GDP) will increase by less than the increase in government spending. C) consumption will remain the same, and so real Gross Domestic Product (GDP) will increase by the same amount of the increase in government spending. D) consumption will increase or decrease, and so real Gross Domestic Product (GDP) will increase or decrease depending on the change in consumption.
A sudden decrease in the market demand in a competitive industry leads to
a. Losses in the short-run and average profits in the long-run b. Above average profits in the short-run and average profits in the long-run c. New firms being attracted to the industry d. Demand creating supply
Figure 10.1 depicts a firm's marginal revenue product curve. If the prevailing hourly wage decreases:
A. the marginal revenue product curve shifts upward. B. the marginal revenue product curve shifts downward. C. the marginal revenue product curve does not shift, but there is a movement upward along the curve. D. the marginal revenue product curve does not shift, but there is a movement downward along the curve.