If we are currently at point T, we can get to point S in the long run
A. through economic growth over a period of years.
B. immediately by using resources more efficiently.
C. immediately by reducing the unemployment rate.
D. immediately through technological development.
A. through economic growth over a period of years.
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Suppose the economy is at full employment and firms become more optimistic about the future profitability of new investment. Which of the following will happen in the short run?
A) The aggregate demand curve will shift to the left. B) Output will decline. C) Unemployment will decline. D) Prices will decline.
Assume that the term structure effect and the default-risk premium remain unchanged and that households and firms have adaptive expectations
At the beginning of 2013, a bank is offering car loans at a nominal interest rate of 7% and the expected rate of inflation is 2 %, and at the beginning of 2014, the bank decreases the nominal interest rate to 5%. The real interest rate at the beginning of 2014 is A) 2%. B) 3%. C) 5%. D) This cannot be determined without being given the expected inflation rate for 2014.
Suppose a person's utility for leisure (L) and consumption (Y) can be expressed as U = Y + L0.5. Assuming a wage rate of $10 per hour, show what happens to the person's labor supply curve when the person wins a lottery prize of $100 per day
What will be an ideal response?
Which of the following goods is most likely to have the lowest price elasticity?
A) movie tickets B) DVD rentals C) gasoline D) pasta