When the prevailing market wage is above equilibrium, we say:
Question 25 options:
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there cannot be any unemployment. |
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there is a shortage of labour. |
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that such a situation could never exist. |
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there is a surplus of labour. |
An increase in productivity will cause the:
Question 26 options:
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short-run aggregate supply curve to shift to the right. |
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a movement along the short-run aggregate supply curve. |
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aggregate demand curve to shift to the right. |
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long-run aggregate supply curve to shift to the left. |
In financial markets, the practice of securitization:
Question 27 options:
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allowed investors to profit from the mortgage payments without being exposed to any risk. |
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pooled high-risk mortgages together, which raised the prices of them to investors. |
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involved converting private-sector equities into government securities |
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pooled the risk of mortgages, allowing higher-risk mortgages to be (supposedly) more safely sold to investors. |
If money has intrinsic value, it has:
Question 28 options:
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value only as its use as money. |
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value unrelated to its use as money. |
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value that is conferred by fiat. |
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None of these is true. |
In: Economics
The long-run response to an increase in the growth rate of the money supply is shown by shifting a. the short-run and long-run Phillips curves left. b. the short-run and long-run Phillips curves right. c. only the short-run Phillips curve left. d. only the short-run Phillips curve right.
In: Economics
One reason the government enacts fiscal policy instead of waiting for the economy to correct itself is:
Question 12 options:
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the automatic (autonomous) adjustment will cause permanent inflation. |
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the automatic (autonomous) adjustment process involves a lot of economic hardship. |
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the automatic (autonomous) adjustment means a lower level of potential GDP (the natural rate of output). |
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fiscal policy does not affect the composite price level. |
Fiscal policy most directly affects the economy by increasing or decreasing:
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the money supply. |
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long-run aggregate supply. |
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aggregate demand. |
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short-run aggregate supply. |
In the long run, changes in prices of goods and services paid by consumers:
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have no effect on aggregate demand. |
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have an effect on the macroeconomy. |
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have no effect on aggregate supply. |
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can shift the aggregate supply curve. |
Assume that the composite price level P is fixed. If the government wishes to decrease equilibrium GDP by $3,000b, and the MPC is 0.5, it should:
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decrease its spending by $6,000b. |
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decrease its spending by $6,000b. |
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decrease its spending by $1,500b. |
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increase its taxes by $1,500b. |
In: Economics
The Impact of the Corona Virus (COVID - 19) on the World Economy:
(1) Can It Cause a Global Economic Recession?
(2) How is COVID-19 Affecting the Supply Chain and International Trade?
In: Economics
Explain the two main forms of stated-preference non-market valuation. Discuss when and why you might choose to use one of them over the other.
In: Economics
In: Economics
In: Economics
In: Economics
In: Economics
In: Economics
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In: Economics