Changes in the real interest rate affect all of the following components of aggregate expenditure except
A) consumption.
B) investment.
C) government purchases.
D) net exports.
C
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George believes that the inflation in this year will be around 9% because it was around 9% in the previous year. George can be said to have:
A) rational expectations. B) marginal expectations. C) adaptive expectations. D) composite expectations.
If a good has a price elasticity of demand coefficient less than one, then:
a. this good has an elastic demand. b. this good has an inelastic demand. c. a 10 percent increase in the price will result in a greater than 10 percent decrease in the quantity demanded. d. the demand curve will be vertical.
Answer the next question based on the following data.OutputTotal Cost0$24133241348454561669What is the average variable cost of the 5th unit of production?
A. $4.80 B. $7.00 C. $12.20 D. $7.40
When the demand and the supply for bread increases simultaneously, will we able determine their effects on the equilibrium price?
What will be an ideal response?