Which of the following will, unambiguously, decrease the price level?
A. an increase in government spending and a decrease in costs
B. an increase in government spending and an increase in costs
C. a decrease in government spending and an increase in costs
D. a decrease in government spending and a decrease in costs
Answer: D
You might also like to view...
A low price-earnings ratio usually indicates that people believe that this corporation will have lower than average growth in earnings.
Answer the following statement true (T) or false (F)
Assume that a firm spends $500 on two inputs, labor (graphed on the horizontal axis) and capital (graphed on the vertical axis)
If the wage rate is $20 per hour and the rental cost of capital is $25 per hour, the slope of the isocost curve will be A) 500. B) 25/500. C) -4/5. D) 25/20 or 1.25.
Marginal revenue product is
A) marginal physical product times marginal factor cost. B) marginal physical product times marginal revenue. C) average physical product times marginal revenue. D) marginal physical product times the wage rate.
The marginal revenue product of a resource is best described as the
a. selling price of the last unit of output produced. b. increment of total cost resulting from the use of an additional unit of the resource. c. marginal product of the resource divided by the unit price of the good produced. d. change in total revenue resulting from employing an additional unit of the resource.