If the price of inputs rises when a nation is in the intermediate range:
a. Real GDP falls and average price level rises.
b. Real GDP rises and real GDP remains the same.
c. Real GDP remains the same and average price level falls.
d. Real GDP remains the same and average price level rises.
e. Real GDP remains the same and average price level remains the same.
.A
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If the MPP of labor is 60 and the price of labor per period is $20, the MPP of machinery is 75 and the price of the machinery per period is $25, in order to achieve optimal input proportions the firm should use
a. more labor and less machinery. b. more machinery and less labor. c. more labor with the same amount of machinery. d. the current combination.
A balance of trade deficit exists when
A. net exports are negative. B. net exports are positive. C. exports equal imports. D. exports exceed imports.
What is the domestic exchange equation of Italy?
Which of the following will definitely reduce a budget deficit and provide fiscal restraint?
A. Greater government spending and lower taxes. B. Greater government spending and higher taxes. C. Lower government spending and lower taxes. D. Lower government spending and higher taxes.