If an increase in prices decreases total revenue in the short run, what will it do to total revenue in the long run?
a. It will decrease total revenue in the long run
b. It will increase total revenue in the long run.
c. It will leave total revenue unchanged in the long run.
d. Any of the above results are possible in the long run.
a
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Yesterday, the dollar was trading in the foreign exchange market at 1.10 euros per dollar. Today, the dollar is trading at 1.20 euros per dollar
The dollar has ________ and a possible reason for the change is ________ in the expected future exchange rate. A) appreciated; because there has been no change B) depreciated; a decrease C) appreciated; a decrease D) appreciated; an increase E) depreciated; an increase
Which of the following statements applies to the classical system?
a. There is money wage inflexibility since full employment already existed b. A perfectly flexible money wage is not always a requirement for full employment c. Full employment was easily explained with downward money wage rigidity d. An imperfect market structure is requirement for full employment e. none of the above
Gold is a perfect medium of exchange and measure of value because of its
a. divisibility, portability, and homogeneity b. divisibility and durability c. durability and relative scarcity d. durability and homogeneity e. divisibility, durability, and relative scarcity
Which of the following decreases in response to the interest-rate effect from an increase in the price level?
a. both investment and consumption b. consumption but not investment c. investment but not consumption d. neither investment nor consumption