If the price of inputs falls and the level of consumer indebtedness rises:
a. Price index falls, and the change in real GDP is uncertain.
b. The change in price index is uncertain, and real GDP rises.
c. Price index rises, and the change in real GDP is uncertain.
d. Price index falls, and real GDP rises.
e. Price index falls, and real GDP falls.
.A
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Suppose a firm doubles its employment of all inputs in the long run. If this action more than doubles the amount of output produced, then this firm is experiencing
a. increasing returns to scale. b. diminishing marginal returns. c. technological progress. d. positive marginal revenue.
Which has a more elastic demand: hamburger or beef?
What will be an ideal response?
Which of the following conditions will be present when a price-taker market is in long-run equilibrium?
a. Price will exceed marginal revenue. b. Firms will earn economic profit. c. Marginal revenue will exceed marginal cost. d. Average total cost will be at a minimum.
Which of the following characteristics of property rights is key for the Coase Theorem to work?
A. High transaction costs B. Zero transaction costs C. Clear transaction costs D. Low transaction costs