The firm's most efficient level of output
A. is OU.
B. is OV.
C. is OW.
D. cannot be found on this graph.
C. is OW.
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Under a fixed exchange rate system, if the inflation rate of the United States exceeds the inflation rate of other nations, the
A) dollar will depreciate. B) dollar will appreciate. C) United States will develop a trade surplus. D) United States will develop a trade deficit.
Which of the following is true?
i. The advanced economies account for more than half of global production. ii. Almost four out of every five people in the world live in the developing economies. iii. In the advanced economies, agriculture accounts for a larger part of total production than in the developing economies. A) Only i and ii B) Only ii and iii C) Only i and iii D) Only i E) i, ii, and iii
When the inflation rate is zero, the
A) real interest rate is greater than the nominal interest rate. B) real interest rate is less than the nominal interest rate. C) nominal interest rate is zero. D) real interest rate equals the nominal interest rate.
When Ia > Ii, unwanted inventories
a. fall, causing both employment and national income to rise b. fall, causing both employment and national income to fall c. rise, causing both employment and national income to fall d. rise, causing both employment and national income to rise e. do not change and unemployment and national income do not change