Which of the following examples, ceteris paribus, best describes the situation shown?
a. Output is permanently changed as a result of the increase in input prices.
b. Input prices are both temporarily and permanently increased.
c. There are no permanent changes in input supply associated with the increase in input prices.
d. The increase in input prices is accompanied by an increase in the labor force.
c. There are no permanent changes in input supply associated with the increase in input prices.
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The ________ rate is the rate at which one currency can be traded for another
A) explicit exchange B) nominal exchange C) expected exchange D) real exchange
Which of the following is not a major function of the Federal Reserve System?
A) setting income tax rates B) controlling the money supply C) lender of last resort D) clearing checks between banks
If the U.S. were to revert to a gold standard, trade deficits would:
A. result in higher domestic interest rates. B. quickly disappear. C. result in high inflation. D. result in gold reserves in the U.S. increasing.
Which of the following firms is in a monopolistically competitive market?
A. Oral -B (a toothbrush manufacturer) B. the U.S. Postal Service C. Marlboro (a cigarette manufacturer) D. United Airlines (an airline company)