According to mainstream economists the basic determinant of real output, employment, and the price level is
A. the incentive to work, save, and invest.
B. the level of aggregate expenditures.
C. the supply of money.
D. information and people's expectations.
Answer: B
You might also like to view...
The expected inflation rate is the inflation rate that people forecast and use to help set
A) the money wage rate. B) the real wage rate. C) real GDP. D) the natural rate of unemployment. E) the price level.
What are some of the main advantages and disadvantages of the extensive financial and commercial networks linking nations today?
What will be an ideal response?
At any quantity of output above the intersection of the marginal revenue and marginal cost curves:
A. ATC equal to AVC. B. MR is higher than MC. C. profits are being maximized. D. MR is lower than MC.
Refer to Scenario 7.1 below to answer the question(s) that follow. SCENARIO 7.1: You are the owner and only employee of a company that writes computer software that is used by gamblers to collect sports data. Last year you earned a total revenue of $90,000. Your costs for equipment, rent, and supplies were $60,000. To start this business you invested an amount of your own capital that could pay you a return of $40,000 a year. Refer to Scenario 7.1. A yearly normal return for your computer software firm would be
A. $20,000. B. $40,000. C. $60,000. D. $100,000.