If the expenditure multiplier is 5, the slope of the aggregate expenditure (AE) curve is
A) 0.2. B) 0.5. C) 0.8. D) 0.7. E) 0.6.
C
You might also like to view...
If the cross elasticity of demand between good A and good B is negative, then a decrease in the price of good A results in
A) an increase in the demand for good B. B) a decrease in the demand for good B. C) a movement downward along the demand curve for good B. D) an increase in the supply of good B. E) a decrease in the supply of good B.
"As Rob consumes more dates over the course of a day, it is likely that his marginal utility from date consumption will rise." Is the previous statement likely correct or incorrect?
What will be an ideal response?
XYZ Co operates in a competitive market. Its production function is q = L?K?. The exponents, ? and ?, are both less than 1. The firm's capital is fixed, and it takes the wage and price as given
Derive the firm's short-run demand for labor as a function of K, w, and p. How does the firm react to an increase in the wage rate?
The break-even quantity is
a. 10000 b. 5,555 c. 12,500 d. 5,000