Suppose the economy was in equilibrium, and the national government increased spending by $200 billion. Monetarist theory would predict that the nation's:
a. Real risk-free interest rate will remain unchanged, but the money multiplier will rise.
b. Real risk-free interest rate will fall causing real GDP to rise.
c. Real risk-free interest rate will fall causing the money multiplier to rise.
d. Real risk-free interest rate will rise but real GDP will remain the same.
e. Real risk-free interest rate will rise causing real GDP to fall.
.D
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Suppose a family-owned yogurt shop has $80,000 in total revenues, $36,000 in rent, and $20,000 in additional operating costs. The husband and wife work in the shop and pay no wages to themselves or others. The economic profits from the shop are
A) $24,000. B) less than $24,000. C) more than $24,000. D) $80,000.
An employer asking potential employees to interview with them is an example of:
A. statistical discrimination. B. signaling. C. building a reputation. D. screening.