According to the graph shown, what does P on the y-axis stand for?
A. Average price level
B. Inflation rate
C. Price of GDP
D. Price of Y
A. Average price level
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Keynes's motivation in developing the aggregate output determination model stemmed from his concern with explaining
A) the hyperinflations of the 1920s. B) why the Great Depression occurred. C) the high unemployment in Great Britain before World War I. D) the high unemployment in Great Britain after World War II.
The substitution effect that occurs when interest rates change involves a change in consumption that develops from ________
A) a change in the general level of prices B) a period of increasing productivity C) a change in the level of income D) a change in the relative prices of consumption in the two periods
The extra costs incurred to avoid holding cash when there is inflation are called the:
A. shoe leather costs. B. external costs. C. consumer price index costs. D. average costs of inflation.
Refer to the below table. How many units of resource Y would the firm employ at a price of $50 per unit of Y?
Assume that the quantities of other resources employed by the firm remain constant.
