If the cross elasticity of demand between Jeep Cherokees and Chevy Lumina Vans is 1.55, then the two vehicles are not substitutes in the eyes of car buyers
Indicate whether the statement is true or false
FALSE
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Which of the following is likely to decrease the exchange rate of Yen to euros (¥/€)?
A) an increase in investment opportunities in the U.S. B) a decrease in investment opportunities in the eurozone C) a decrease in demand for European goods in Japan D) an increase in investment opportunities in the eurozone
What is the term economists use to discuss cost on a per-unit-of-output basis?
a. short-run cost b. fixed cost c. variable margin cost d. average total cost
A reduction in current consumption to pay for the investment in capital intended to increase future production is known as the:
A. investment trade-off. B. consumption effect. C. substitution effect. D. income effect.
When the price level is below the level at which the aggregate demand curve crosses the long run aggregate supply curve
A. actual real GDP would be less than total planned real expenditures, and the price level will rise. B. there will be pressures that will lead to a shift of either the aggregate demand or the long run aggregate supply curves. C. actual real GDP would exceed total planned real expenditures, and the price level will fall. D. there will be no price level change.