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

The Yum Yum Bubble Gum Company rents space in a warehouse to store its inventory. The owner of the warehouse just lowered the rent he charges the Yum Yum Bubble Gum Company. Everything else equal, the rent decrease is likely to ________ Yum Yum's optimal level of inventory.

At the beginning of 2017, the Shades of Gray Company has 8,000 pairs of sunglasses in stock. During 2017, the company produces 120,000 pairs of sunglasses and sells 112,000 pairs of sunglasses. The Shades of Gray Company's stock of inventory at the end of 2017 is ________ pairs of sunglasses.

Which of the following statements is true?

An increase in output will cause the unemployment rate to fall by a larger percentage if

Transfer payments are cash payments made by ________ directly to ________.

Refer to the information provided in Table 30.1 below to answer the question(s) that follow. Table 30.1 -Refer to Table 30.1. What is the real wage rate in 2015 using 2014 as the base year?

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. What is the real wage rate in 2016 using 2015 as the base year?

The multiplier reaches its peak about ________ months after a spending increase began.

At the beginning of 2017, Joey planned to buy a new iPhone, LCD TV, and motorcycle by borrowing money. Joey already owes $25,000 on other loans. He also planned to buy new clothing and DVDs out of current income. An increase in interest rates, during 2017, will most likely

A graduate student is likely to consume less than a factory worker because the

Labor productivity rises during a recession as firms retain their more experienced workers.

If the income effect is ________ the substitution effect, the labor supply curve is vertical.

The amount of output produced by an average worker in one hour is per capita output.

When firms hold excess labor, the unemployment rate drops faster during an expansion.

When the economy is in a slump, labor productivity tends to fall because firms have

When the substitution effect is greater than the income effect, Donna will supply more work if

If the economy is on the steep part of the AS curve, the multiplier will be

The income effect of a wage rate decrease should lead to

A phrase coined by John Maynard Keynes to describe investors' feelings is "Animal Spirits."

If discouraged workers were counted as unemployed, then as output decreased the unemployment rate would