The AS curve shows the total quantity of goods and services firms produce at any given price level.
a. true
b. false
Ans: a. true
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Holding all else constant, a decrease in the real interest rate on Mexican assets will ________ the supply of dollars in the foreign exchange market and ________ the equilibrium Mexican peso/U.S. dollar exchange rate.
A. increase; decrease B. decrease; increase C. increase; increase D. decrease; decrease
The price of a new portable CD player falls from $100 to $90 . The quantity of CD players demanded rises from 15,000 per year to 20,000 per year. Use the midpoint formula to calculate the price elasticity of demand for portable CD players
Is the demand elastic, inelastic, or unit elastic?
What is the core inflation rate and how does it differ from the overall CPI inflation rate?
What will be an ideal response?
Average costs curves rise with production
a. Due to declining average fixed costs b. Due to rising average fixed costs c. Due to marginal costs being less than average costs d. Due to rising marginal costs