At a short-run equilibrium output equals ________, while at a long-run equilibrium output equals ________.
A. aggregate demand; the monetary policy reaction function
B. an output level consistent with the inflation rate; potential output
C. the monetary policy reaction function; aggregate demand
D. potential output; an output level consistent with the inflation rate
Answer: B
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The gross domestic product of a country is $500,000. If its income per worker of the population is $100, the size of its employed labor force is ________
A) 5,000 B) 200 C) 8,000 D) 2,500
If the nominal interest rate is 4 percent and the anticipated inflation rate is 6 percent, then
A) the real interest rate is -10 percent. B) the real interest rate is 10 percent. C) the real interest rate is -2 percent. D) the real interest rate is 2 percent.
If 12 candy bars are demanded at $0.30 each and 4 candy bars are demanded at $0.50 each, what is the elasticity of demand over the price range from $0.30 to $0.50?
a. 2 b. 1.67 c. 0.5 d. 7.5 e. 0.4
Henry can make a bird house in 3 hours and he can make a bird feeder in 1 hour. The opportunity cost to Henry of making a bird house is 1/3 bird feeder
a. True b. False Indicate whether the statement is true or false