A decrease in the price level in an economy implies that _____
a. the spending multiplier will be equal to the marginal propensity to consume
b. there will be an increase in investment
c. there will be a decrease in investment
d. the value of the spending multiplier will be equal to one
e. the value of the spending multiplier will be equal to zero
b
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Refer to the figure above. If the government fixes a minimum wage rate at $25, the unemployment in the market will be:
A) 10 units of labor. B) 20 units of labor. C) 30 units of labor. D) 0 unit of labor.
The CPI is the average price of all goods and services produced within the economy
Indicate whether the statement is true or false
"In order for Charlie Trotter's, an upscale restaurant in Chicago, to maximize profit from the employment of chefs, the restaurant should hire chefs up to the point where the value of marginal product equals the wage rate for chefs"
Is the statement correct or incorrect?
As the variety of goods and services increases, barter becomes:
a. easier because the chance of there being a double coincidence of wants increases. b. harder because the chance of there being a double coincidence of wants increases. c. easier because the chance of there being a double coincidence of wants decreases. d. harder because the chance of there being a double coincidence of wants decreases. e. easier because people have more options to choose from.