If the purchasing power of your debt is increasing over time, we know that the:
A. real interest rate is positive.
B. nominal rate of interest is positive.
C. inflation rate is greater than the nominal interest rate.
D. real interest rate is negative.
A. real interest rate is positive.
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Refer to Figure 13-4. Given the economy is at point A in year 1, what will happen to the unemployment rate in year 2?
A) It will remain constant. B) It will rise. C) It will fall. D) not enough information to answer the question
Aggregate concentration can be interesting political effects more than for economic effects
Indicate whether the statement is true or false
Monopolistic competition is characterized by excess capacity because:
A. firms charge a price that is less than marginal cost. B. firms produce at an output level less than the least-cost output. C. the demand for a product is perfectly elastic in this type of industry. D. firms are always profitable in the long run.
Refer to the graph shown. Assume that the market is initially in equilibrium at a price of $10 and a quantity of 500 units. In equilibrium, producer surplus is equal to:
A. 3,500. B. 1,500. C. 2,500. D. 5,000.