To determine the real interest rate in the data, one should take the interest rate on government debt
A) and leave it at that.
B) and add the inflation rate.
C) and subtract the inflation rate.
D) and divide by the inflation rate.
C
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The opportunity cost of attending a university for a year is measured by: a. the tuition fees incurred
b. the size of the student loans the student becomes responsible for. c. the sum of all expenditures on rent, food, books, and tuition incurred during the school year. d. the value of the best opportunity or opportunities foregone in order to enroll for the year.
Suppose Qxd = 10,000 ? 2 Px + 3 Py ? 4.5M, where Px = $100, Py = $50, and M = $2,000. How much of good X is consumed?
A. 500 units B. 1,100 units C. 950 units D. 100 units
Other things equal, a decrease in the price level will
A) shift the AS curve to the left. B) shift the AS curve to the right. C) cause a movement up the AS curve. D) cause a movement down the AS curve.
If the price of output increases, the marginal revenue product curve will shift ________ and the profit-maximizing quantity of labor demanded will ________.
A. up; increase B. up; decrease C. down; increase D. down; decrease