The MP curve may be used to represent how ________
A) movements of the inflation rate are determined by the real interest rate
B) monetary policy responds to changes in the real interest rate
C) movements of the real interest rate are related to the inflation rate
D) all of the above
E) none of the above
C
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Comment on the following statement: "When average product and marginal product are equal, marginal product is at its maximum."
What will be an ideal response?
A firm’s production process shows constant returns to scale. It can produce 5,000 widgets at a total cost of $2,500 and 10,000 widgets at an average cost of
A. $10,000. B. $5,000. C. $2,000. D. $0.50.
The prime rate is a lagging indicator
a. True b. False Indicate whether the statement is true or false
An decrease in Social Security contributions will make
A. national income larger. B. personal income larger. C. gross domestic product larger. D. national income smaller.