The natural rate of interest is not
A) zero.
B) the neutral rate of interest.
C) Wicksellian rate of interest.
D) associated with the natural rate of unemployment.
A
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Use the following graph for a perfectly competitive firm generating a loss in the short run to answer the next question.
Which area in the graph represents the portion of total cost that the firm can recoup by continuing to produce rather than shutting down?
A. 0cdg B. acdf C. 0beg D. abef
Inflation is
A) a decline in the total purchasing power of an economy. B) a decrease in the amount of other goods that a unit of money will purchase. C) a fall in people's real incomes. D) an increase in the cost of living. E) all of the above.
Because of a recession in Japan, net exports from the United States decrease by $10 billion. If the MPC is 0.75, how much less spending will occur in the U.S. economy in the second "round" of spending?
a. $17.5 billion b. $10 billion c. $7.5 billion d. $5.0 billion
Pineapples and kumquats are substitute goods. Exceptional weather in Guatemala resulted in a bumper crop of pineapples. Ceteris paribus,
A. the price of kumquats will fall and the price of pineapples will increase. B. the price of both pineapples and kumquats will fall. C. the price of both pineapples and kumquats will increase. D. the price of kumquats will increase and the price of pineapples will fall.