A temporary supply shock that raises prices
A) will cause the real interest rate to rise in the long run.
B) has no long-run impact on inflation and output.
C) causes output to fall in the long run.
D) causes inflation to rise in the long run.
B
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The above figures show the market for HD televisions. If the technology used to produce these televisions advances so that productivity increases, which figure shows the effect of this change?
A) Figure A B) Figure B C) Figure C D) Figure D E) None of the figures represent this change.
Average cost equals total cost multiplied by the number of units of output.
Answer the following statement true (T) or false (F)
Money serves as a unit of account, which means:
a. it acts as an intermediary between the buyer and the seller. b. it will still hold its value. c. it is the ruler by which other values are measured. d. it must also be acceptable to make purchases today that will be paid in the future.
If an economy's population grows at 3 percent and income grows at 4 percent, then
a. per capita income is declining b. the economy's standard of living is decreasing c. per capita income is negative d. per capita income is growing e. human capital per capita is increasing