When the economy is in the Keynesian range, an increase in aggregate demand will
A. increase the price level and have no effect on real national output.
B. increase the real national output and have no effect on the price level.
C. increase both real output and the price level.
D. increase the price level and decrease the real national output.
B. increase the real national output and have no effect on the price level.
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HK Sweaters, Incorporated employs labor at a wage rate of $12 per hour and rents capital for$30 per hour. At its current level of labor and capital, the marginal product of labor is 24 and the marginal product of capital is 60
Is the firm currently maximizing profit? Explain.
Discretionary expenditures account for approximately
A. One-half of the federal budget. B. One-fifth of the federal budget. C. Three-fourths of the federal budget. D. One-third of the federal budget.
Consider the labor market for computer programmers. During the late 1990s, the value of the marginal product of all computer programmers increased dramatically. Holding all else equal, the equilibrium quantity in the labor market for computer programmers
a. increased. b. decreased. c. did not change. d. It is not possible to determine the equilibrium quantity.
Advocates of higher minimum wages for unskilled labor defend their position by arguing that
What will be an ideal response?