The interest rate effect helps to explain why:
A. an increase in the price level raises investment.
B. a decrease in the price level reduces investment.
C. an increase in the price level reduces the quantity of aggregate demand.
D. a decrease in the price level reduces the quantity of aggregate demand.
Answer: C
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During the first half of the 2000s, the price of pork rose. After that, within a couple of years the price fell back to about the level before the initial increase. What might have led to these events?
What will be an ideal response?
Data on Northeastern manufacturing firms show that firm size (number of workers per firm) increased for _________________ between 1820 and 1860
a. mechanized industries b. non-mechanized industries c. mechanized and non-mechanized industries d. only the textile industry
Tony's Taco Truck has average variable costs of $1 and average fixed costs of $2 when it produces 50 units of output (tacos). The truck's total cost at 50 units of output is a. $3
b. $50. c. $100. d. $150.
If nations such as Germany, Japan, and the United States prohibited international trade in automobiles, a likely effect would be that
a. the price effect would become a more significant consideration for each firm that makes automobiles. b. the excess of price over marginal cost would become less pronounced in the automobile market. c. all countries would become better off. d. automobile producers in the U.S. would collude to produce a large number of cars.