Classical economists believe that a reason the aggregate supply curve is ________ is because people who are not working are those who have chosen not to work at the prevailing wage rate.
A. vertical
B. horizontal
C. positively sloped
D. negatively sloped
Answer: A
You might also like to view...
In the multiple regression model, the t-statistic for testing that the slope is significantly different from zero is calculated
A) by dividing the estimate by its standard error. B) from the square root of the F-statistic. C) by multiplying the p-value by 1.96. D) using the adjusted R2 and the confidence interval.
One lesson that American policy makers can learn from the health care systems of other counties is
a. people must be willing to accept long waiting lists for expensive services. b. a government-run system ensures equal access across socio-economic groups. c. the importance of having a safety valve. d. the mix between general practitioners and specialists is of little importance. e. private insurance cannot complement government insurance.
It's not likely that a country will specialize completely in one good even if it has a lower opportunity cost because
A. The country would end up inside its production possibilities curve. B. Comparative advantage is not a workable concept in the world economy. C. Opportunity costs increase as more of a good is produced. D. The country would want to save some of the good for its own citizens.
The cyclical deficit is $400 billion, potential output is $9 trillion and the tax rate is 16 percent. With this information, we can infer that the actual output of this economy is:
A. $9 trillion. B. $6 trillion. C. $11.5 trillion. D. $6.5 trillion.