Suppose people anticipate inflation will be 3 percent during the next several years. If this is true, when the real interest rate is 4 percent, what will be the nominal (money) interest rate?
What will be an ideal response?
7%
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In the long run, equilibrium positions that arise in both monopolistically competitive and perfectly competitive markets are
A) MR = MC and P = MC. B) P = ATC and P = MC. C) MR = MC and P = ATC. D) MR = MC = P.
If the firm operated at optimum efficiency, how much would its output be?
Total utility is
A. the additional satisfaction gained by consuming one more unit of something. B. used to compare different people's likes and dislikes. C. relatively easy to measure. D. the total amount of satisfaction yielded by the consumption of a good or service.
Suppose that in 2015 you paid $150,000 for a house that was built in 2005 and sold that year for $210,000 . The amount this transaction would add to the GDP in 2015 is
a. $0. b. $60,000. c. $210,000. d. ?$60,000