Suppose that there are only two goods in Japan, sushi and saki. The absolute price of a 100-gram plate of sushi is 200 yen, and the absolute price of a liter of saki is 100 yen. What is the relative price of saki in terms of sushi?
a. 100 grams per liter.
b. 200 grams per liter.
c. 50 grams per liter.
d. 400 grams per liter.
c. 50 grams per liter.
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If the short-run aggregate supply increases by less than the long-run aggregate supply, then, at the short-run equilibrium
A) GDP will be below potential GDP. B) aggregate demand will increase. C) GDP will be equal to potential GDP. D) GDP will be above potential GDP.
In an economy without government or a foreign sector the equilibrium level of output occurs when
A) actual saving equals actual investment. B) actual saving equals desired investment. C) desired saving equals desired investment. D) desired saving equals actual investment.
If the wage rate rises, labor's share in the total costs of a production process:
a. will increase. b. will decrease. c. may increase or decrease depending on the elasticity of demand for the product. d. may increase or decrease depending on the ease of substitution of other inputs for labor.
Consider a mutual fund with a 6 percent back-end load that decreases to 0 percent in the seventh year. How much of the load will an investor have to bear if she sells it off in the seventh year?
a. 1 percent of the load b. 0 percent of the load c. 2 percent of the load d. 6 percent of the load e. 4 percent of the load