Other things equal, the higher the price level, the higher is the real wealth of households
a. True
b. False
Indicate whether the statement is true or false
False
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Use the following graphs to answer the next question.
In the graphs, the numbers in parentheses near the AD1, AD2, and AD3 labels indicate the level of investment spending associated with each curve, respectively. All numbers are in billions of dollars. The interest rate and the level of investment spending in the economy are at point D on the investment demand curve. To achieve the long-run goal of a noninflationary full-employment output of Qf in the economy, the Fed should try to ________.
A. increase aggregate demand by decreasing the interest rate from 4% to 2% B. decrease aggregate demand by increasing the interest rate from 2% to 4% C. decrease aggregate demand by increasing the interest rate from 4% to 6% D. increase the level of investment spending from $120 billion to $150 billion
The decisions Apple makes in determining production levels for its iPhone is an example of a microeconomic topic
Indicate whether the statement is true or false
Jake is a corn farmer in Nebraska. He rents his land on a long-term lease for $250,000 a year. He pays his farm hands $28,000 a year
Is his rent a fixed cost or a variable cost? Are the wages he pays his workers a fixed cost or a variable cost? Briefly explain your answers.
In monopolistic competition, the long-run equilibrium results in zero economic profit of the firms in these industries. The key factor in this is
A. differentiated products. B. freedom of entry into and exit from the industry. C. price discrimination. D. brand names.