Assume a simple macroeconomic model. When inventories rise unexpectedly,
A. income is above its equilibrium value.
B. income will rise until it reaches its equilibrium value.
C. total spending is higher than total output.
D. total output is less than spending.
Answer: A
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The rate at which prices in general are increasing is called:
A. the unemployment rate. B. the inflation rate. C. the trade balance. D. the standard of living.
The above table gives some of the costs of the Delicious Pie Company. What is the total fixed cost of producing 100 pies?
A) $300 B) $400 C) $700 D) More information is needed to calculate the total fixed cost.
A situation in which a country does not trade with other countries is called
A) self-actualization. B) autonomy. C) independence. D) autarky.
The ____ effect is a ____ network externality where a consumer wants to own a unique good
a. bandwagon; negative b. bandwagon; positive c. snob; negative d. snob; positive.