If expected inflation rises, monetary policy ________
A) is rendered ineffective
B) must be tightened, to prevent further increases in inflation and expected inflation
C) will prevent any increase in the real interest rate
D) is designed to increase the nominal interest rate by more than the increase in expected inflation
E) none of the above
D
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The labor demand curve represents the relationship between the quantity of labor demanded at:
A) different income tax rates. B) different values of average product of labor. C) different wage rates. D) different prices of the good that labor is used to produce.
The direct exchange of goods and services for other goods and services is known as
A) barter. B) purchasing power. C) intermediation. D) wholesale trade.
Average propensity to consume (APC) equals
A. change in real disposable income divided by change in planned consumption. B. change in planned consumption divided by change in real disposable income. C. real disposable income divided by planned consumption. D. planned consumption divided by real disposable income.
For constant returns to scale, a(n) ________ in a firm's scale of production leads to ________ average total cost.
A. increase; higher B. decrease; a change in C. decrease; no change in D. increase; lower