The Framing Gallery frames posters. The Framing Gallery has total fixed costs of $500. The Framing Gallery's average variable cost is $20 and its average total cost is $25. The Framing Gallery is currently framing
A) 5 posters.
B) 25 posters.
C) 100 posters.
D) a number of posters that is indeterminate from this information.
C) 100 posters.
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The lion's share of purchases and transactions in the U.S. economy are made with coins and paper money
a. True b. False Indicate whether the statement is true or false
Answer the next question on the basis of the following consolidated balance sheet for the commercial banking system. Assume the required reserve ratio is 10 percent. All figures are in billions.AssetsLiabilities & Net WorthReserves$30 Checkable Deposits$300Loans130 Stock Shares130Securities70 Property200?Refer to the above data. The commercial banking system has excess reserves of:
A. $60 billion. B. $30 billion. C. $70 billion. D. $0.
According to Friedman and Phelps, which of the following statements is a correct characterization of unemployment and inflation in the United States since the 1950s?
A. The relationship between inflation and unemployment is very different from the Phillips curve. A positive relationship is evident rather than an inverse relationship. B. A trade-off between inflation and unemployment as pictured in the Phillips curve existed in the 1970s and 1980s, but not over the entire period. C. There is no clear relationship between unemployment and inflation. D. A trade-off between inflation and unemployment as pictured in the Phillips curve existed over the entire time period.
Describe the process that occurs with demand-pull inflation in the extended aggregate demand and aggregate supply model.
What will be an ideal response?