Assume there are only two goods in the economy, apples and bananas. In 2018, 1,400 apples were sold at $1 each and 8,500 bananas at $0.60 each. In 2019, the price of apples rose to $2 and the quantity rose to 2,400; the price of bananas rose to $0.80 and the quantity sold rose to 9,000.
What will be an ideal response?
147.69
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The real rate of interest equals 5.0 percent and the anticipated rate of inflation is 3.0 percent. What does the nominal rate of interest? equal?
How is average total cost calculated? If the total cost of producing 190 units of output is $355, what is the average total cost?
What will be an ideal response?
When wages and prices are completely flexible ________
A) inflation is determined by expected inflation and price shocks B) labor hoarding occurs C) unemployment is disconnected from the real economy D) all of the above E) none of the above
Which of the following statements about the Keynesian model is correct?
a. The economy would achieve full employment if left free from destabilizing government policies. b. Active monetary is always effective while fiscal policies is rarely so. c. Both Keynesians and classicists reach the same policy conclusions, but for different reasons. d. The economy is inherently unstable because of the instability of aggregate demand, which is primarily due to unstable expectations. e. both b and d.