Other things the same, which of the following happens if the price level rises?
a. Money demand shifts rightward.
b. Initially there is an excess demand for money in the money market.
c. The interest rate rises.
d. All of the above are correct.
d
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Refer to Scenario 10.3. The marginal cost of red herrings is given as: MC = 0.6Q. What is the profit-maximizing level of output?
A) 0 B) 25 C) 50 D) 60 E) 125
One of the most crucial ideas in macroeconomics is understanding that:
A. zero unemployment is the best way to achieve economic growth. B. measuring total expenditures or total income both equal total production of an economy. C. prolonging economic downturns can be prolonged by fiscal policy. D. GNP is the most commonly used measurement of total production.
The income effect and the substitution effect offset each other at point
A. I.
B. J.
C. K.
D. S.
Proprietorships are
A. easy to form but difficult to dissolve. B. responsible for most of the profits in the country. C. generally large relative to other business organizations. D. the most common form of business organization in the country.