Total expenditures for new final goods equals total output of new final goods in the income and product accounts
A) because no one will produce what cannot be sold.
B) because prices will rise or fall to clear the market.
C) because unsold goods are assumed to be purchased by the firms that produced them.
D) only at equilibrium.
E) when all goods are sold in the year they are produced.
C
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Everything else the same, in the foreign exchange market which of the following increases the demand for U.S. dollars and shifts the demand curve rightward?
A) The U.S. interest rate rises. B) The U.S. exchange rate falls. C) The Japanese interest rate rises. D) The U.S. exchange rate rises. E) The expected future exchange rate falls.
When a product's price increases from $800 to $1,200, the quantity demanded decreases from 11,000 to 9,000 . Based on this information, the price elasticity of demand (in absolute terms) is estimated to be equal to: a. 0.5
b. 2.0. c. 0.25. d. 4.0.
The inflation rate you are likely to hear on the nightly news is calculated from
a. the GDP deflator. b. the CPI. c. the Dow Jones Industrial Average. d. the unemployment rate.
A firm with market power has an individual consumer demand of Q = 20 ? 4P and costs of C = 4Q. What is optimal price to charge for a block of 20 units?
A. $36 B. $18 C. $90 D. $72