The equilibrium price level and equilibrium level of real GDP occur at the intersection of the aggregate demand curve and the aggregate supply curve.
Answer the following statement true (T) or false (F)
True
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Find the real exchange rate for the following case: Assume that the representative basket of European goods and services costs 40 euros and the representative U.S
basket costs $50, and the dollar/euro exchange rate is $0.90 per euro, then the price of the European basket in terms of U.S. basket is ________.
A problem for developing countries is that the prices of primary products fluctuate more widely than do the prices of finished goods because
a. crop supply changes very little despite the weather b. crop supply fluctuates with the weather c. weather never varies d. crops go in and out of fashion as new diets are developed e. crop demand fluctuates with the weather
Which of the following examples involves variable costs
a. Last year, Gerard Industries paid $2 million for raw materials. b. Gerard Industries pays $100,000 a year for rent. c. Gerard Industry just made an annual insurance payment of $50,000. d. The property tax rate for Gerard Industries remains at 2 percent.
Along an indifference curve
A. utility increases as you move to the right. B. every combination of goods the consumer can purchase with their income is given. C. every combination of the goods give the same level of satisfaction. D. the prices of goods will change.