Refer to the graph shown. If expected inflation is 6 percent, the economy will be in long-run equilibrium at point:
A. A.
B. B.
C. C.
D. D.
Answer: C
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Mr. Max is about to purchase 4 units of good A and 6 units of good B. The price of both A and B is $2 . Mr. Max has only $20 to spend. If the marginal utility of the fourth unit of A is 12 and the marginal utility of the sixth unit of B is 12, then:
a. he should not buy anything. b. he should buy more of A and less of B. c. he should buy less of A and more of B. d. he should buy A and B in the quantities indicated. e. he should buy more of A and little more than that of B.
The largest percentage of U.S. national debt to GDP occurred during
A. World War II. B. The Civil War. C. The Great Depression. D. World War I.
The effect of diminishing marginal returns outweighing the effect of spreading out the fixed costs is illustrated by the ________ average cost curve ________.
A. long-run; decreasing B. long-run; increasing C. short-run; decreasing D. short-run; increasing
Explain why the top executives of Société Générale are more likely to be blamed than Jérôme Kerviel.
What will be an ideal response?