Which of the following is characteristic of business cycles?
a) consumption displays greater volatility than GDP
b) investment remains relatively stable throughout the business cycle
c) the inflation rate is a leading indicator of recessions and expansions in GDP
d) the unemployment rate is a leading indicator of recessions and expansions in GDP
e) the growth rate of wages fluctuates less than the growth rate of GDP
e) the growth rate of wages fluctuates less than the growth rate of GDP
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There is an exchange rate between
A. every pair of currencies. B. the world’s major currencies but not between the currencies of less-developed countries. C. currencies on a fixed exchange rate system but not for those on a floating rate system. D. the currencies of the European Union but not for the nations outside the European Union.
Suppose the nation's price level rises as a result of an increase in aggregate demand and a decrease in aggregate supply which leaves output unchanged. If the Fed is required to follow a rule that stabilizes the price level, what will the Fed do to the money supply and what impact will this have on total output in the economy?
Suppose the w = $20 and r = $30. The isocost line for a firm in this industry is:
A. K = 0.033C ? 0.66L. B. 1.5L + K = 0.5C. C. C = 20K + 30L. D. Depends entirely on the functional form of the production function.
See Figure 19.1. Lu's consumer surplus is equal to
A. $500. B. $300. C. $100. D. $200.