If the selling price of a product is $10, the average total cost is $8, and total sales are 5,000 units, the total profit will be
a. $5,000.
b. $8,000.
c. $10,000.
d. $20,000.
c. $10,000.
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It is impossible to conduct ________ policy and maintain a _________ exchange rate.
A. monetary; fixed B. monetary; floating C. fiscal; fixed D. fiscal; floating
Temporary supply shocks:
A. would affect the short-run equilibrium. B. are significant events that directly affect production. C. shift the aggregate-supply curve in the short run. D. All of these are true.
If incomes fall by 5 percent and the quantity demanded for new cars falls by 10 percent,
A. New cars are an inferior good, and the income elasticity is +0.5. B. New cars are a normal good, and the income elasticity is +2.0. C. New cars are a normal good, and the income elasticity is +.5. D. New cars are an inferior good, and the income elasticity is +2.0.
One of the strengths of monetary policy relative to fiscal policy is that monetary policy:
A. can be implemented more quickly. B. is subject to closer political scrutiny. C. does not produce a net export effect. D. entails a larger spending income multiplier effect on real GDP.