As the unemployment rate declines in response to the economy moving closer and closer to capacity output, the aggregate price level rises at a decreasing rate.
Answer the following statement true (T) or false (F)
False
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Which of the following are attempts to ease the principal-agent problem?
a. Stock Options. b. Golden Parachutes. c. Efficiency Wages. d. All of the above.
Consumers most likely decide on their current consumption spending by looking at their short-run income prospects.
Answer the following statement true (T) or false (F)
If the Fed buys securities worth $10 million, then
A) bank reserves will increase by $10 million. B) bank reserves will decrease by $10 million. C) currency in circulation will increase by $10 million. D) bank holdings of securities increase by $10 million.
The relationship between the quantity of inputs and the quantity of outputs is called:
A. an input-output function. B. a production function. C. a cost function. D. a resource function.