Monetarists assume that suppliers of labor
a. always have perfect information about the real wage.
b. base their decisions on the expected real wage.
c. may or may not know the real wage.
d. could not possibly have perfect information.
B
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Other things constant, if the population decreases and GDP remains unchanged,
A) real GDP necessarily decreases. B) per capita GDP necessarily increases. C) per capita GDP necessarily decreases. D) real GDP necessarily increases.
An economist at the University of Alaska at Anchorage has been asked to explain why the price of Alaskan crude oil has fallen recently. In order to develop a model, the professor should take which steps?
a. Identify the problem, develop a model based on simplifying assumptions and test the model to formulate a conclusion. b. Gather data on crude oil prices and seemingly unrelated variables in order to look for associations, then formulate a hypothesis based on those unexpected associations. c. Ask people in Alaska why they are not purchasing oil. d. None of these. The oil industry is controlled by a cartel; therefore price changes in the industry cannot be explained using economic theories.
Which group is most likely to argue that an increase in government spending will be more effective than a reduction in taxes as a tool to promote recovery?
a. monetarists b. Keynesian economists c. supply-side economists d. new classical economists e. All of the above; there is a consensus on this issue.
The core rate of inflation is a measure of the relative price changes that excludes changes in energy and food prices
Indicate whether the statement is true or false