If the economy is in the vertical portion of the AS curve, what will be the effect on an increase in the price level on the level of employment?
A. There will be substantial increase in employment
B. There will be a less than proportional increase in employment
C. There will be no change in employment
D. Cannot be predicted from the information given
C. There will be no change in employment
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The U.S. imports Japanese cars with a domestic price of 5,000,000 yen and the yen/dollar exchange rate is 120 on January 1, 2003. On January 1, 2004 the yen/dollar exchange rate is 125
What is the dollar price of the cars on January 1, 2003? What is the dollar price of the cars on January 1, 2004?
Other things equal, an increase in the consumer confidence index tends to raise the average propensity to consume
a. True b. False Indicate whether the statement is true or false
According to the income approach to measuring GDP, the largest income category is
A) profits. B) rent. C) wages. D) consumption expenditure. E) interest.
Large manufacturing firms that buy many different parts or components (e.g., auto manufacturers) can choose which parts to buy from other firms and which parts to make in their own factories
These manufacturers may be able to use monopsony power to reduce the price paid to outside suppliers for parts that are: A) standard components for many manufacturers so that there are many buyers and sellers. B) only used in their cars so that there is one buyer and a few sellers. C) bought and sold in perfectly competitive markets. D) none of the above