In the simple Keynesian model of the determination of income, the price level is assumed to be
A) exogenous and to gradually change.
B) endogenous and to gradually change.
C) exogenous and to remain constant.
D) endogenous and to remain constant.
C
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The table below describes the relationship between the number of workers hired by a call center each hour and the number of calls the call center can make each hour. The call center has only 1 telephone. The telephone costs the firm $5/hour (regardless of how many calls are made), and each worker is paid $10 per hour.Calls PerHourNumber ofTelephonesPer HourNumber ofWorkersPer Hour0$0$01$30$1002$40$1603$60$1904$100$2105$150$2206$210$225If the price of a telephone increases to from $5 to $10 an hour and nothing else changes, then:
A. total cost would not change. B. marginal cost would not change. C. fixed cost could not change. D. marginal cost would increase by $5 at every level of output.
Which of the following would not be considered "capital" in economics? a. A delivery van used by Federal Express
b. $500 in currency. c. A microprocessor factory d. In economics, both (a) and (c) are considered capital.
Economic theory suggests that the standard of living of American workers would rise if
a. the minimum wage were doubled. b. automation were outlawed. c. workers were forced to retire earlier. d. technological improvements increased output per worker-hour.
The monetary policy reaction curve:
A. is the guideline the Fed publishes in setting their interest rate target. B. has remained fairly constant over the years. C. is set by Congress and given to the Fed as a guideline to follow. D. approximates the behavior of central bankers.