The rate at which aggregate supply changes to restore equilibrium at potential output depends crucially on:
a. how quickly planned investment spending adjusts to changes in population growth
b. how quickly planned consumption spending adjusts to changes in the price level and nominal wages.
c. how quickly technology changes to increase aggregate supply.
d. whether the economy is experiencing a recessionary gap or an expansionary gap.
e. how quickly real wages adjust to restore full employment in the labor market.
e
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What are the four types of bias that economist Bryan Caplan believes voters bring with them when they vote? Briefly explain each of these biases
What will be an ideal response?
Rent-seeking behavior results in
a. increased economic activity by promoting efficiency. b. lower economic activity by diverting resource to less-productive uses. c. a more equitable distribution of income and wealth. d. lower prices throughout the economy. e. greater income and wealth in the private sector.