When constructing a basic macroeconomic model, several assumptions (not realistic, but necessary to simplify the analysis) are made. Which of the following are assumed to be constant?
A. The price level
B. Consumption spending
C. The value of fixed-money assets
D. Taxes
Answer: A
You might also like to view...
Bobby spends $100 per month on pizza and CDs. His utility from these goods is shown in the table above. The price of a pizza is $10 and the price of a CD is $20. Bobby currently buys 6 pizzas and 2 CDs. To maximize his utility, he should
A) buy more pizza and fewer CDs. B) buy more CDs and fewer pizza. C) buy more of both goods. D) stay with the current combination of goods.
Refer to the table below. Busy Betty sells her cakes for $20 each and her constant marginal cost to produce each cake is $12, which is equal to her (constant) average total cost. What is her expected marginal benefit from holding the 20th cake in inventory?
The above table shows the probability distribution of cake sales at Busy Betty's Bakery.
A) $7.80
B) $8.00
C) $7.20
D) $12.80
Which of the following is one source of disagreement between economists?
a. Some facts about the economy are unknown. b. Economists differ in their political persuasions. c. Economic theory may not always give an unambiguous answer to a question. d. Solving one problem may make another problem worse. e. All of the above are correct.
Spending VCU4 on real-world goods and services causes the nation's:
a. Monetary base to fall. b. M2 money supply to fall. c. M2 money multiplier to fall. d. Monetary base to remain the same.