The classical range of the aggregate supply curve is the portion where:
a. The average price level and real GDP do not change with movements in aggregate demand.
b. Real GDP does not change with movements of aggregate demand, but the average price level does change.
c. The average price level does not change with movements of aggregate demand, but real GDP does.
d. The average price level and real GDP change with movements in aggregate demand.
.B
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In the above figure, which part corresponds to an increase in the money wage rate?
A) Figure A B) Figure B C) Figure C D) Figure D
For a college student who wishes to calculate the true costs of going to college, the costs of room and board
a. should be counted in full, regardless of the costs of eating and sleeping elsewhere. b. should be counted only to the extent that they are more expensive at college than elsewhere. c. usually exceed the opportunity cost of going to college. d. plus the cost of tuition, equals the opportunity cost of going to college.
Suppose that each week Henry buys 12 peaches and 3 apples at his local farmer's market. Both kinds of fruit cost $1 each. From this we can infer that:
A. if Henry is maximizing his utility, then his marginal utility from the 12th peach he buys must be greater than his marginal utility from the 3rd apple he buys. B. Henry is not maximizing his utility. C. if Henry is maximizing his utility, then his marginal utility from the 12th peach he buys must equal his marginal utility from the 3rd apple he buys. D. for Henry the law of diminishing marginal utility does not apply to peaches.
According to the equation of exchange, if M = 200, P = 100, and Q = 10, the V is:
A. 20. B. 2. C. 10. D. 5.