2. If workers become more productive, which of the following would happen in the labor market?
a. Labor supply would increase.
b. Labor supply would decrease.
c.Labor demand would increase and labor supply would decrease.
d.Labor demand would decrease and so would labor supply.
5.Since a long run consists of many short runs, the classical model is
a. incorrect every time we look at output data
b.accurate during the short run
c. paradoxically quite accurate in the long run; however, it is not very accurate in the short run
d. our best guide to fluctuations in the economy
e. paradoxically quite accurate in the short run; however, it is not very accurate in the long run
18.The difference between the number of workers employed if the economy was operating at full employment and the number of workers currently employed given aggregate expenditures is known as
a. cyclical unemployment
b. frictional unemployment
c. structural unemployment
d. unemployment is not possible in the short run macro model
22. From the perspective of the classical model, many economists would NOT consider one of these to be an automatic de-stabilizer
a. Stock prices
b. Wealth
c. Housing prices
d. Investment spending
e. None of the above
25. We expect a rise in transfer payments when
a. the needs of the poor receive more publicity
b. taxes rise
c. GDP rises and inflation soars
d. the retirement age remains unchanged over time
e. recessions occur
2. If workers become more productive, which of the following would happen in the labor market?
a. Labor supply would increase.
b. Labor supply would decrease.
c.Labor demand would increase and labor supply would decrease.
d.Labor demand would decrease and so would labor supply.
5.Since a long run consists of many short runs, the classical model is
a. incorrect every time we look at output data
b.accurate during the short run
c. paradoxically quite accurate in the long run; however, it is not very accurate in the short run
d. our best guide to fluctuations in the economy
e. paradoxically quite accurate in the short run; however, it is not very accurate in the long run
18.The difference between the number of workers employed if the economy was operating at full employment and the number of workers currently employed given aggregate expenditures is known as
a. cyclical unemployment
b. frictional unemployment
c. structural unemployment
d. unemployment is not possible in the short run macro model
22. From the perspective of the classical model, many economists would NOT consider one of these to be an automatic de-stabilizer
a. Stock prices
b. Wealth
c. Housing prices
d. Investment spending
e. None of the above
25. We expect a rise in transfer payments when
a. the needs of the poor receive more publicity
b. taxes rise
c. GDP rises and inflation soars
d. the retirement age remains unchanged over time
e. recessions occur
