Multiple Choice
In the long run in the model with Keynesian sticky wages and prices
A) the representative consumer is working too much.
B) the First Welfare Theorem holds.
C) the First Welfare Theorem does not hold.
D) the representative consumer is working too little.
E) the representative firm is hiring too much labour.
Correct Answer:
Verified
Correct Answer:
Verified
Q43: A Pareto optimum requires<br>A) <span
Q44: In a one-period economic model, the government
Q45: Examples of exogenous variables include<br>A)labour supply and
Q46: A competitive equilibrium has the following
Q47: An increase in total factor productivity<br>A)increases consumption,
Q49: In the basic one-period model in Chapter
Q50: A competitive equilibrium is Pareto-optimal if there
Q51: What are three reasons for a competitive
Q52: Changes in government spending are NOT likely
Q53: An increase in government spending<br>A)reduces consumption, increases