If the price level increased from 120 to 144, then what was the inflation rate?
a. 24 percent.
b. 25 percent.
c. 20 percent.
d. 17 percent.
c
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Investment spending accounts for nearly 60 percent of U.S. GDP.
Answer the following statement true (T) or false (F)
Country A has a lower stock of capital than Country B, but the supply of labor in both the countries is equal
A) An additional unit of capital will increase output in Country A only if there is an increase in the total efficiency units of labor. B) The increase in output due an additional unit of capital will be larger in Country A than in Country B. C) The increase in output due an additional unit of capital will be smaller in Country A than in Country B. D) An additional unit of capital will increase output in Country B only if there is an increase in the total efficiency units of labor.
Which of the following is the best definition of money?
A) Currency plus outstanding credit card balances. B) The outstanding credit debt of households and businesses. C) Anything that widely serves as a medium of exchange, unit of account, and store of value. D) Various types of paper notes and coinage backed by precious metals.
As firms hire additional units of labor, eventually the marginal revenue product will always increase.
Answer the following statement true (T) or false (F)