Exam 30: Household and Firm Behavior in the Macroeconomy: a Further Look

Refer to the information provided in Table 30.2 below to answer the question(s) that follow. Table 30.2 -Refer to Table 30.2. From 2015 to 2016 the real wage

An increase in nonlabor income leads to ________ in consumption and ________ in labor supply.

The employment rate is the ratio of the number of people

Suppose that output in an economy is 50 units and the number of hours worked in the economy is 25. What is the value of labor productivity?

Suppose that output in an economy is 50 units and the number of hours worked in the economy is 25. If the economy enters a recession, which of the following combinations of output and hours worked would best reflect the recession?

When output increases by 1%, the number of jobs ________ in the short run. One of the reasons why this is true is that a firm is likely to meet some of the increase in output by increasing the number of hours worked per job.

When output increases by 1%, the unemployment rate does not tend to fall by 1% in the short run because

A decrease in nonlabor income leads to ________ in consumption and ________ in labor supply.

Refer to the information provided in Figure 30.2 below to answer the question(s) that follow. Figure 30.2 -Refer to Figure 30.2. Between times t₃ and t₄, labor is

When output increases by 1%, the number of jobs does not tend to rise by 1% in the short run. Which of the following statements represents one of the reasons why this is true?

The amount a household would like to work within a giver period at the current wage rate if it could find the work is referred to as the unconstrained supply of labor.

If the ________ effect is greater than the ________ effect, a decrease in interest rates will decrease saving and increase consumption spending by households.

Suppose that input prices respond very quickly to output price. This will

Refer to the information provided in Table 30.2 below to answer the question(s) that follow. Table 30.2 -Refer to Table 30.2. From 2016 to 2017 the real wage

When output increases by 1%, the unemployment rate ________ in the short run because as output increases, the size of the labor force increases.

If inventory stocks are ________ and firms have enough capital and labor to support an output increase, monetary and fiscal policy will be ________.

A firm is more likely to invest in new capital if

The highest labor-force participation rate is among

Time is a key factor in investment decisions.

Which of the following types of investments is the most volatile?