Refer to Figure 11-11. The minimum efficient scale of output is reached at what rate of output?
A) 10,000 workers B) 10,000 picture frames
C) 20,000 picture frames D) 5,000 picture frames
B
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Describe the crisis in Russia starting from 1989. Explain why?
What will be an ideal response?
Starting from short-run equilibrium, the following occurs: labor productivity rises and individuals expect higher (future) incomes. What is the effect on the price level and Real GDP in the short run?
A) Real GDP falls and the price level necessarily rises. B) Real GDP rises and the effect on the price level cannot be determined. C) Real GDP rises and the price level necessarily falls. D) Real GDP falls and the effect on the price level cannot be determined. E) Real GDP rises and the price level necessarily rises.
In a certain economy, when income is $400, consumer spending is $325 . The value of the multiplier for this economy is 3.33 . It follows that, when income is $450, consumer spending is
a. $360 . For this economy, an initial increase of $50 in consumer spending translates into a $266.67 increase in aggregate demand. b. $360 . For this economy, an initial increase of $50 in consumer spending translates into a $166.50 increase in aggregate demand. c. $341.67 . For this economy, an initial increase of $50 in consumer spending translates into a $266.67 increase in aggregate demand. d. $341.67 . For this economy, an initial increase of $50 in consumer spending translates into a $166.25 increase in aggregate demand.
Price elasticity of demand is lower for goods with few close substitutes.
Answer the following statement true (T) or false (F)