The price level in the economy is a composite measure reflecting the:
a. rate of change in average prices for the wide range of services produced and consumed in one of the sectors of the economy relative to the price level expected the next year.
b. average price of the wide range of goods and services produced and consumed in the economy relative to the price level in a base year.
c. rate of change in the price of inputs used to produce the wide range of goods and services in the overall economy relative to the price level in a base year.
d. government's cost of procuring resources to produce public goods and services relative to the price level in a base year.
b
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The body that is responsible for dating the beginning and ending dates for a recession is
A) the Congress. B) the National Bureau of Economic Research. C) the Bureau of Economic Analysis. D) the Fed.
If a country wants to promote future growth, it should
A. produce more capital goods today. B. produce more consumer goods today. C. produce only needed goods. D. produce only economic goods.
Suppose market demand is p = 10 - Q. Firms have a fixed entry cost of 5 and no marginal cost. If firm A is the incumbent, can it deter the entry of its rival, firm B?
What will be an ideal response?
What is the price elasticity of demand? In terms of percentage changes, what is its formula?
What will be an ideal response?