If inventory investment during a year was minus $6 billion, producers must have
a. produced only $6 billion of new capital assets during the year.
b. sold $6 billion more goods and services during the year than they produced.
c. added goods valued at $6 billion to their stock of unsold goods and raw materials.
d. produced new capital assets that exceeded the depreciation allowance by $6 billion.
B
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Even though it often does not result in profit maximization, some small firms use a cost-plus pricing strategy anyway because
A) they sell several products, each of which sells for a different price. The time and expense involved in finding the profit-maximizing price for each product are not worth the effort. B) they do not understand what marginal revenue and marginal cost mean. C) it is easy to use. D) it is expensive to hire an economist who can determine what the profit-maximizing price is.
If real money demand doubles while the nominal money supply is unchanged, what happens to the price level?
A) The price level increases by a factor of four. B) The price level doubles. C) The price level is unchanged. D) The price level falls by one-half.
Which of the following groups of economies appear to have both a political consensus to hold inflation low and the economic tools to do so?
a. middle-income economies b. high-income economies c. low- and middle income economies d. middle- and high-income economies
If there were no factors keeping wages from reaching equilibrium then there would be no
a. cyclical unemployment. b. frictional unemployment. c. structural unemployment. d. natural rate of unemployment.