Which of the following is a component of the equation of exchange?
A. Consumption.
B. The interest rate.
C. Investment.
D. The velocity of money.
D. The velocity of money.
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In the long run, if price is less than average cost
A) there is an incentive for firms to exit the market. B) there is no incentive for the number of firms in the market to change. C) there is profit incentive for firms to enter the market. D) the market must be in long-run equilibrium.
Using the same mpc and multiplier as before (we had chosen the example where mpc = 0.8, resulting in mult = 5)
What will be an ideal response?
Which of the following explains economics as it should be?
a. microeconomics b. ideal economics c. delusional economics d. normative economics
At a wage of $25 per hour, the firm employs 50,000 of hours of labor per week. If the wage would increase to $27 per hour, the firm would employ 45,000 hours of labor per week. What is the elasticity of labor demand?
A. ?1.25 B. ?0.25 C. ?1.50 D. ?2.50 E. ?0.50