When the inflation rate is high and volatile,
A) investment is less risky and gains from trade are reduced.
B) real output and real wages will grow rapidly.
C) employment will expand and the unemployment rate will decline.
D) investment is more risky and gains from trade are reduced.
D) investment is more risky and gains from trade are reduced.
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Explain how the interest rate effect can increase aggregate demand
What will be an ideal response?
At point e in the above figure, the marginal product of labor
A) is less than the average product of labor. B) equals the average product of labor. C) is greater than the average product of labor. D) is at its maximum.
The addition to a business firm's total costs, that comes from producing one more unit of output, is its:
a. total variable cost. b. marginal cost. c. sunk cost. d. opportunity cost. e. total fixed cost
The Borda count fails to satisfy which of Kenneth Arrow's properties of a "perfect" voting system?
a. no dictator b. unanimity c. transitivity d. independence of irrelevant alternatives