The idea of menu costs suggests that
a. firms alter prices less frequently as inflation increases.
b. firms alter prices more frequently as inflation increases.
c. firms always alter prices when costs increase.
d. firms alter prices as interest rates rise.
b
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Conditional sales all involve the ________ relationship between ________.
A) horizontal; two buyers B) vertical; a seller and a buyer C) vertical; two sellers D) horizontal; a seller and a buyer
Describe the difference between the employment rate and the labor force participation rate (LFPR). Under what circumstance would the two be equal to one another?
A nation's GDP can be calculated as
A. The sum of value added and intermediate goods. B. The total value added at all stages of production. C. PI plus depreciation. D. NI plus depreciation.
If a U.S. resident purchases a foreign bond, her transactions are included
a. in the U.S. supply of loanable funds and the supply of dollars in the market for foreign-currency exchange.
b. in the U.S. supply of loanable funds and the demand for dollars in the market for foreign-currency exchange.
c. in the U.S. demand for loanable funds and the supply of dollars in the market for foreign-currency exchange.
d. in the U.S. demand for loanable funds and the demand for dollars in the market for foreign-currency exchange.