If net exports increase by 100 and the mpc is 0.75, equilibrium aggregate output increases by
A) 100.
B) 250.
C) 400.
D) 750.
C
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The figure above shows a firm in a perfectly competitive market. The firm's supply curve is the curved line linking
A) point a to point c and stopping at point c. B) point b to point d and continuing on past point d along the MC curve. C) point b to point f and stopping at point f. D) point c to point e and continuing on past point e along the ATC curve.
Following the 2007-2009 financial crisis, many people feared that Greece might leave the euro and resume using the drachma. If that happened, the drachma might be worth less than the euro
When using fiat money like the drachma, the key to acceptance is that households and firms have confidence that if they accept drachma in exchange for goods and services, the drachma will not lose much value during the time they hold them. If sellers were not willing to accept the drachma in exchange for goods and services, the drachma would not serve as A) a medium of exchange. B) fiat money. C) legal tender. D) a unit of account.
A small business owner who is earning a positive economic profit, no matter how small, is doing better than if she sold her business and went to work for another firm
a. True b. False Indicate whether the statement is true or false
Suppose an economy's production consists only of corn and soybeans. In 2010, 20 bushels of corn are sold at $4 per bushel and 10 bushels of soybeans are sold at $2 per bushel. In 2009, the price of corn was $2 per bushel and the price of soybeans was $1 per bushel. Using 2009 as the base year, it follows that, for 2010,
a. nominal GDP is $50, real GDP is $100, and the GDP deflator is 50. b. nominal GDP is $50, real GDP is $100, and the GDP deflator is 200. c. nominal GDP is $100, real GDP is $50, and the GDP deflator is 50. d. nominal GDP is $100, real GDP is $50, and the GDP deflator is 200.