If marginal revenue is $10 and marginal costs is $8, the firm should increase its output.
Answer the following statement true (T) or false (F)
True
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Aggregate demand in India increased in 2008. In addition, real GDP grew strongly and inflation approached 10 percent. The best explanation for this inflation is that
A) aggregate supply did not change. B) potential GDP decreased. C) there was a movement up along the aggregate demand curve in 2008. D) potential GDP increased, but at a slower rate than aggregate demand.
Over the past 40 years, real GDP per capita has roughly
a. stayed the same. b. tripled. c. increased by 50 percent. d. doubled. e. declined by 50 percent.
The act of buying a commodity in one market at a lower price and selling it in another market at a higher price is known as:
A. buying long. B. selling short. C. a tariff. D. arbitrage.
According to rational expectations theory, what information do businesses and workers use when they form their expectations regarding inflation?
A. recent events and data B. Keynesian and monetarist models C. forecasts by public-and private-sector economists D. all the relevant information that is available