When the exchange rate depreciates in the short run and then appreciates to its original level in the long run, it implies that the domestic money supply has:
a. temporarily risen.
b. permanently risen.
c. temporarily fallen.
d. permanently fallen.
Ans: b. permanently risen.
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Alan Jones owns a company that sells life insurance. When he employs 10 salespersons his firm sells $200,000 worth of contracts per week, and when he employs 11 salespersons, total revenue is $210,000 . The marginal revenue product of the 11th salesperson is:
a. $410,000. b. $10,000. c. $20,000. d. $210,000.
A monopolistically competitive firm may earn above normal profits or may incur losses in the short run
a. True b. False Indicate whether the statement is true or false
The Bureau of Labor Statistics divides the adult population into four categories: employed, underemployed, unemployed, and not in the labor force
a. True b. False Indicate whether the statement is true or false
Assume the exchange rate is fixed. Using the IS-LM model, graphically illustrate and explain what effect an increase in consumer confidence will have on the domestic economy. In your graphs, clearly label all curves and equilibria
What will be an ideal response?