The demand for inputs is ________ because it depends on the demand for outputs.
A. a derived demand
B. inconsequential
C. unrelated to cost
D. a secondary demand
Answer: A
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Credit card balances are not considered to be money primarily because they:
A. are an asset used in making transactions. B. do not represent an obligation to pay someone else. C. are not part of people's wealth. D. are rarely used to make purchases.
According to the natural rate hypothesis, the unemployment rate should equal 0 percent in the long run
a. True b. False Indicate whether the statement is true or false
If consumption increases in general the aggregate demand curve will:
A. remain unchanged but the economy will move down along the curve to a lower quantity. B. shift straight down. C. remain unchanged but the economy will move down along the curve to a higher quantity. D. shift to the right.
Use the following table to answer the next question. The money supply and investment are in billions.Money Supply (billions of dollars)Interest RateInvestment (billions of dollars)$507%$100606110705120804130903140Assume that the MPC is 0.8 and the reserve requirement is 0.1. If the Federal Reserve needs to decrease aggregate demand by $100 billion at each price level to move the economy back to full employment and the current interest rate is 5%, then the Federal Reserve should ________ bonds on the open market equal to ________.
A. buy, $4 billion B. sell, $4 billion C. sell, $2 billion D. buy, $2 billion