The average fixed cost curve increases as output increases
a. True
b. False
Indicate whether the statement is true or false
False
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Figure 7-15
For a firm at equilibrium, at point A in Figure 7-15,
A. the price of labor is high relative to the price of machines. B. the MPP of labor is greater than the MPP of machines. C. the MPP of labor is less than at point B. D. output is higher than at point B.
An unanticipated decline in the real interest rate in the loanable funds market will cause the
a. aggregate demand curve to shift to the right. b. aggregate demand curve to shift to the left. c. long-run aggregate supply curve to shift to the left. d. natural rate of unemployment to fall.
Do the costs of forming a currency union fall or rise as the degree of labor market integration rises among member countries?
A) They will rise because any macroeconomic shock in one country will be transmitted to other members when there is greater labor market integration. B) They will fall because labor market integration allows labor to move to other member countries when there are negative macroeconomic shocks at home. C) They will rise because labor market integration allows labor to move to other member countries when there are negative macroeconomic shocks at home. D) The costs of forming a currency union do not depend at all upon the degree of labor market integration among member countries.
Given: M = 500, V = 9, P = 10, Q = 450. According to the crude quantity theory of money, if M rises to 700, how much would V, P, and Q be?
What will be an ideal response?