A decrease in consumer incomes will:
a. decrease the demand for an inferior good.
b. decrease the supply of an inferior good.
c. increase the demand for a normal good.
d. do none of the above
d
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If the firm is maximizing profits or minimizing losses, it is producing ______ units of output and charging a price of _______.
A. 280; $12.00
B. 280; $10.40
C. 200; $7.00
D. 200; $12.80
The openness of the economy and flexible exchange rates
A. reduce the effectiveness of both expansionary and contractionary monetary policies. B. increase the effectiveness of a contractionary monetary policy, but reduce the effectiveness of an expansionary monetary policy. C. increase the effectiveness of an expansionary monetary policy, but reduce the effectiveness of a contractionary monetary policy. D. increase the effectiveness of both expansionary and contractionary monetary policies.
When the inflation rate is zero, the
A) real interest rate is greater than the nominal interest rate. B) real interest rate is less than the nominal interest rate. C) nominal interest rate is zero. D) real interest rate equals the nominal interest rate.
The measure most commonly used by economists to gauge the standard of living of a nation is: a. labor productivity
b. nominal GDP. c. real GDP. d. real GDP per capita.