What is the total revenue of a shoe company equal to?
A. income minus explicit and implicit costs
B. the change in quantity sold divided by the change in price
C. price of shoes times quantity sold
D. elasticity of demand divided by percentage change in quantity
Answer: C
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Refer to the scenario above. Robert should use ________ to play this game
A) forward induction B) backward induction C) mixed strategies D) his dominated strategy
When the price level is rising at ______ and the real interest rate is 1 per-cent a year, the nominal interest rate is 3 percent a year
A. 4 percent a year B. 3 percent a year C. 2 percent a year D. 1 percent a year
According to Keynes, if the economy is in a deep recession, an increase in aggregate demand will
A. increase real GDP without putting significant upward pressure on the price level. B. decrease real GDP. C. increase the price level with no effect on real GDP. D. increase both real GDP and the price level.
Suppose the economy is initially in long-run equilibrium. For each of the shocks listed below, explain the long-run effects on output and the price level
(a) Labor supply decreases. (b) The government shuts down the Bureau of Economic Analysis. (c) Productivity increases.