The branch of economics that examines the impact of choices on aggregates in the economy is:
A) positive economics.
B) normative economics.
C) macroeconomics.
D) microeconomics.
Ans: C) macroeconomics.
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The real wage is the wage:
A. measured in current dollars. B. employers are required to pay workers. C. required to maintain a minimum standard of living. D. measured in terms of purchasing power.
Using Figure 9.1, explain what a firm would do in the short run if the market price of its product were at P3 and it produced Q3 . Is the firm earning an economic profit? Explain
What will be an ideal response?
In the Keynesian framework, as long as output is below the equilibrium level, unplanned inventory investment will remain negative, firms will continue to ________ production, and output will continue to ________
A) lower; fall B) lower; rise C) raise; fall D) raise; rise
If the data show that periods of high economic growth rate accompanied by high inflation rates, then changes in aggregate demand are the primary source of economic fluctuations
a. True b. False Indicate whether the statement is true or false