In Japan in 2000 the price level fell by 5 percent and the money wage rate did not change. As a result, there was a
A) movement down along Japan's short-run aggregate demand curve.
B) movement down along Japan's short-run aggregate supply curve.
C) rightward shift in Japan's short-run aggregate supply curve.
D) movement down along Japan's long-run aggregate supply curve.
Ques. 2In the United States
A) there are more households with incomes below the mean income than above the mean income.
B) there are more households with incomes above the mean income than below the mean income.
C) the mode income equals the mean income.
D) the income distribution is bell shaped.
Ques. 3The equation of exchange
A) is MV = PY.
B) becomes the quantity theory if velocity and the price level are constant.
C) cannot be used in an economy with inflation.
D) All of the above answers are correct.
Ques. 4Using the data in the above table, if the firm employs 3 workers, total product (measured in units per day) and average product and marginal product of the third worker (measured in units per worker) are
A) 19, 6 1/3, and 9 respectively.
B) 3, 19, and 6 1/3 respectively.
C) 19, 3, and 9 respectively.
D) 19, 6 1/3, and 7 respectively.
Ques. 5Beef and leather belts are complements in production. If people's concern about health shifts the demand curve for beef leftward, the result in the market for leather belts will be a
A) lower equilibrium price for a leather belt because there is an increase in the supply of leather belts.
B) lower equilibrium price for a leather belt because there is a decrease in the supply of leather belts.
C) higher equilibrium price for a leather belt because there is a decrease in the supply of leather belts.
D) higher equilibrium price for a leather belt because there is an increase in the supply of leather belts.
Ques. 6In July 2008, a British pound could buy 2. By October 2008, a pound could buy 1.55. Over the four months, the
A) pound depreciated against the dollar.
B) the real exchange rate did not change.
C) pound appreciated against the dollar.
D) the U.S. inflation rate increased.
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