Average fixed costs
A. fall as output rises.
B. are the costs associated with producing an additional unit of output.
C. reach their minimum at the output level where the average fixed cost curve is intersected by the marginal cost curve.
D. provide a per unit measure of costs.
Answer: A
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A) P, the domestic price level. B) E, the nominal exchange rate. C) P times E, the domestic price level times the domestic price level. D) P , the foreign price level. E) P times E, the foreign price level times the nominal exchange rate.
If the Fed increases the real interest rate as a response to a decrease in the inflation rate, the ________, which results in a ________
A) MP curve shifts up; movement down the AD curve B) MP curve shifts up; movement up the AD curve C) IS curve shifts up; movement down the AD curve D) IS curve shifts up; movement up the AD curve
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a. when the economy is at full employment. b. during an economic boom. c. when resources are fully utilized. d. during a recession.
The goal of the minimum wage is to ensure workers a minimally adequate standard of living
a. True b. False Indicate whether the statement is true or false