If there are diminishing marginal returns to labor,
a. output diminishes as additional workers are added
b. the management team grows as more workers are hired
c. the rise in output becomes smaller and smaller with each successive worker hired
d. the management team shrinks as successive workers are added
e. macroeconomic business cycles are generated by microeconomic production functions
C
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Explain the effects of a permanent increase in the U.S. money supply in the short run and in the long run. Assume that the U.S. real national income is constant
What will be an ideal response?
The Taylor rule relates
a. inflation rates to unemployment rates. b. the federal funds rate to inflation and output rates. c. differences in the federal funds rate from its target to differences in inflation and unemployment from its target. d. differences in the federal funds rate from its target to differences in inflation and unemployment from its target. e. All of the above
If the demand for a product is price inelastic,
a. producers' revenues will increase if supply increases b. producers' revenues will increase if supply decreases c. a small change in price will cause a large shift in the demand curve d. a large change in price will cause a small shift in the demand curve e. a small change in price will cause a small shift in the demand curve
William Julius Wilson believes that the rise of black urban poverty was caused by each of the following except
A. the rise of welfare dependency. B. racism. C. the decline of smokestack industries. D. the exodus from the ghettos of the black middle and working classes.