If the economy is on the IS curve, but is to the left of the LM curve, then the ________ market is in equilibrium, but the interest rate is ________ the equilibrium level
A) goods; below
B) goods; above
C) money; below
D) money; above
B
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Suppose there are only two goods: bread and wine. In Mexico, the absolute price of wine is 30 pesos per bottle. If the relative price of wine in terms of bread is 5 loaves per bottle, then the absolute price of bread is
a. 5 pesos per loaf. b. 6 pesos per loaf. c. 25 pesos per loaf. d. 150 pesos per loaf.
It is difficult to practice arbitrage for untradable services or for goods which have a few knowledgeable traders
Indicate whether the statement is true or false
Unpredictable inflation can cause businesses to:
A. have a hard time planning future production. B. cease production until they know how to adjust for inflation. C. restrict output and stockpile inventory. D. increase production due to expecting future price level changes.
If you wanted to unionize workers, you could increase your chances by attempting to unionize workers
A. in the South. B. in right-to-work states. C. at foreign-owned automobile firms. D. at government agencies.