Refer to Table 19-18. What is real GDP in 2016, using 2016 as the base year?
A) 28,885 B) 11,790 C) 11,200 D) 10,275
Ques. 2If the unemployment rate in the economy is steady at 4 percent per year, how does the short-run Phillips curve predict that the inflation rate will be changing, if at all? What will happen if the unemployment rate now rises to 7 percent per year?
Assume there are no changes to inflation expectations. Provide an appropriate graph to support your discussion.
Ques. 3Refer to Table 23-4. Given the consumption schedule in the table above, the marginal propensity to save is
A) 0.3. B) 0.4. C) 0.5. D) 0.6.
Ques. 4Higher wages that compensate workers for unpleasant aspects of a job are called compensating differentials.
Indicate whether the statement is true or false
Ques. 5Refer to Table 19-18. What is real GDP in 2016, using 2011 as the base year?
A) 28,885 B) 11,790 C) 11,200 D) 10,275
Ques. 6Suppose a developing country experiences a reduction in machinery and capital equipment as foreign entrepreneurs decrease the amount of investment in the economy. As a result
A) the economy will move up along the long-run aggregate supply curve.
B) the long-run aggregate supply curve will shift to the right.
C) the long-run aggregate supply curve will shift to the left.
D) the economy will move down along the long-run aggregate supply curve.
Ques. 7Cost-plus pricing would be consistent with selecting the profit-maximizing price when
A) the demand for the firm's product is unit elastic.
B) consumers value the product beyond its marginal cost.
C) a firm has no difficulty estimating its demand curve.
D) it results in a price that causes quantity sold to be where marginal revenue equals marginal cost.
Ques. 8Explain why it is more difficult to determine the incidence of the corporate income tax than it is to determine the incidence of the tax on gasoline.
What will be an ideal response?
Ques. 9Refer to Table 19-17. What is real GDP in 2016, using 2011 as the base year?
A) 3,320 B) 3,690 C) 6,360 D) 7,035
Ques. 10While labor unions tend to negotiate above-equilibrium wage rates for their members, they also tend to reduce the quantity of labor hired.
Indicate whether the statement is true or false