If the economy is on the steep part of its aggregate supply curve, expansionary policy will mostly increase the price level.
Answer the following statement true (T) or false (F)
True
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The average product is the greatest in the short run when the
A) total product is maximized. B) marginal product is equal to zero. C) marginal product is maximized. D) marginal product is equal to the average product. E) marginal product is greater than the average product.
When the U.S. real interest rate rises ________
A) U.S. dollar assets earn a higher return relative to foreign assets B) makes U.S. exports cheaper in foreign currencies C) imports will decrease D) all of the above E) none of the above
Refer to the table below. If Fresh Laundry is currently producing 6 quality units, to maximize profit, Fresh Laundry should ________ the number of quality units as the current quality marginal revenue is ________ than its marginal cost.
Fresh Laundry is a firm that produces laundry detergent. The table above summarizes Fresh Laundry's product quality marginal revenue and marginal cost at various quality levels.
A) decrease; greater
B) increase; less
C) increase; greater
D) decrease; less
The alternative combinations of final goods and services that can be produced with all available resources and technology are the
A. Nominal GDP. B. Real GDP. C. Production possibilities. D. Net domestic product.