If a market basket of goods cost $100 in the base year and $110 in a later year, then average prices have increased by:
A. 110 percent.
B. 100 percent.
C. 90 percent.
D. 10 percent.
D. 10 percent.
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Contractionary monetary policy should be used if:
A) aggregate demand-aggregate supply equilibrium is below potential output. B) aggregate demand-aggregate supply equilibrium is above potential output. C) aggregate demand-aggregate supply equilibrium is equal to potential output. D) none of the above.
A firm can produce 450 gallons of milk per day with 4 workers and 500 gallons per day with 5 workers. The marginal product of the fifth worker expressed in gallons per worker per day, is:
a. 35. b. 50. c. 70. d. 350.
World output of goods and services increases with specialization because:
A. The world's resources are used more efficiently. B. The production possibilities curve shifts outward for each country. C. The workers in each country work fewer hours per week. D. The infant industries in each country are protected.
An increase in which of the following is most likely to cause the short-run aggregate supply curve to shift to the left?
A) Consumers' income B) The money supply C) Government spending D) The optimism of business firms E) The per unit cost of production