To answer, refer to the following: "At Huffy's ... bicycle factory, 1,700 employees turn out 15,000 bicycles a day (in 1987). Five years before, it required 2,200 workers to make 10,000 bikes daily." (The Wall Street Journal). Holding all else equal, we can conclude that, over those years,
A. Huffy's marginal cost decreased.
B. Huffy's marginal cost increased.
C. Huffy's average variable cost increased.
D. Huffy's average variable cost decreased.
E. both a and c
Answer: D
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What are automatic stabilizers? How do they help stabilize real GDP?
What will be an ideal response?
Along an actual (observed) Phillips curve,
A. aggregate output varies inversely with the unemployment rate. B. aggregate output directly inversely with the inflation rate. C. the inflation rate varies inversely with the unemployment rate. D. the inflation rate varies directly with the unemployment rate.
Refer to the information provided in Figure 1.5 below to answer the question(s) that follow.
Figure 1.5Refer to Figure 1.5. As firms produce additional units, average costs declines by a smaller and smaller amount. If output is graphed on the horizontal axis and average costs are graphed on the vertical axis, the relationship between average costs and output would be like which of the following Panels?
A. A B. B C. C D. D
If the price level rises, the quantity of
A) nominal money people demand increases. B) real money people demand increases. C) nominal money people demand decreases. D) real money people demand decreases.