The intersection of the demand curve and the marginal-cost curve is equivalent to the socially-optimal level of output
a. true
b. false
Ans: a. true
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Who is an unemployed worker? If the number of employed workers in a country, where the size of the labor force is 4 million, is 2.75 million, what is the number of unemployed workers in the country?
What will be an ideal response?
The exchange-rate effect is based, in part, on the idea that
a. a decrease in the price level reduces the interest rate. b. an increase in the price level causes investors to move some of their funds overseas. c. an increase in the price level causes domestic goods to become less expensive relative to foreign goods. d. a decrease in the price level reduces spending on net exports.
An increase in government spending will immediately shift
A. aggregate supply to the right. B. aggregate demand to the right. C. aggregate supply to the left. D. aggregate demand to the left.
Refer to the information provided in Figure 29.1 below to answer the question(s) that follow.
Figure 29.1Refer to Figure 29.1. If policy makers decide on a policy at Point t4 but it does not affect the economy until period t7, then the policy choice is likely to be
A. automatically stabilizing. B. optimal. C. stabilizing. D. destabilizing.