Refer to the information provided in Figure 26.7 below to answer the question(s) that follow.
Figure 26.7Refer to Figure 26.7. The level of aggregate output that can be sustained in the long run without inflation
A. is $400 million.
B. is $700 million.
C. is $800 million.
D. cannot be determined from this information because aggregate demand is not given.
Answer: B
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The key concept in the new classical approach to the aggregate supply curve is
A) the impact of imperfect information on business decisions. B) the impact of changes in the price level on real balances. C) the inverse relationship between the real interest rate and desired investment spending. D) the crowding out of investment spending by government spending.
The ability to lower the average costs of production for two or more products is possible with
a. Economies of scale b. Economies of Scope c. Diseconomies of Scale d. Diseconomies of Scope
Define the average tax rate
The Farm Factory, a booth at the local Farmer's Market, sells fresh eggs for $1.50 per dozen and fresh milk for $2.50 per gallon. What is the opportunity cost of buying a dozen eggs?
A) 1 2/3 gallons of milk B) 3/5 of a gallon of milk C) $2.50 D) $1.50