The purpose of measuring the overall level of prices in the economy is to permit comparison between dollar figures from different times
a. True
b. False
Indicate whether the statement is true or false
True
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An argument in favor of the Federal Reserve adopting inflation targeting is that in the long run, the Fed can have an impact on inflation but not on real GDP
Indicate whether the statement is true or false
If capital is measured on the vertical axis and labor is measured on the horizontal axis, the slope of an isoquant can be interpreted as the
A) rate at which the firm can replace capital with labor without changing the output rate. B) average rate at which the firm can replace capital with labor without changing the output rate. C) marginal product of labor. D) marginal product of capital.
When a good ends up over consumed and depleted, we can assume it is a:
A. common resource. B. private good. C. public good. D. scarce good.
If a firm is forced to take external costs into account, it will
A. increase production and charge a lower market price. B. reduce prices and hire more workers. C. reduce prices and hire fewer workers. D. reduce production and charge a higher market price.