In order to calculate the price level, which of the following would you need to know?
a. the levels of supply and demand for all goods and services in the economy
b. the rate of inflation
c. the prices of all of the goods and services in the economy
d. the level of the money supply in the economy
c. the prices of all of the goods and services in the economy
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A firm cannot control all of the factors that allow it to make economic profits. Which of the following is an example of an uncontrollable factor?
A) hiring competent managers B) input prices C) product differentiation D) producing at a lower average total cost than competing firms
The IS model implies that a dollar of government spending has a larger impact on equilibrium output than does a dollar of taxes. Explain
What will be an ideal response?
Taiwan exports tools to the United States. Consumers in Taiwan will probably pay a(n) ________ price for tools with free trade than they would with a closed economy.
A. somewhat lower B. lower C. more fair D. higher
Refer to the diagram. The average propensity to consume:
A. is greater than 1 at all levels of disposable income above $100.
B. is greater than 1 at all levels of disposable income below $100.
C. is equal to the average propensity to save.
D. cannot be determined from the information given.