If product prices increase slower than nominal wages increase, then the real value of wages decreases.
Answer the following statement true (T) or false (F)
False
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What would be the profits for Irene's Dairy in equilibrium?
a. 5 million loss b. 5 million c. 10 million d. 20 million
Suppose the government spending multiplier is 1.5. This means that
A) a $1 decline in government spending will raise Real GDP by $1.50. B) a $1 rise in government spending will raise both total spending and Real GDP (assuming prices are constant) by $1.50. C) a $1 rise in government spending will raise investment spending by $1.50. D) a $1 rise in government spending will change interest rates by 1.50 times what it was before the $1 rise in government spending. E) none of the above
If the consumer's money income were cut from $52 to $28, and the prices of J and K remain at $8 and $4 respectively, she would maximize her satisfaction by purchasing:
A. 3 units of J and 3 units of K.
B. 1 unit of J and 3 units of K.
C. 4 units of J and 1 unit of K.
D. 2 units of J and 3 units of K.
Refer to the above graph for a firm in pure competition. Line A represents:
A. average revenue. B. total revenue. C. average total cost. D. average fixed cost.