Starting from short-run equilibrium, the following occurs: labor productivity rises and individuals expect higher (future) incomes. What is the effect on the price level and Real GDP in the short run?
A) Real GDP falls and the price level necessarily rises.
B) Real GDP rises and the effect on the price level cannot be determined.
C) Real GDP rises and the price level necessarily falls.
D) Real GDP falls and the effect on the price level cannot be determined.
E) Real GDP rises and the price level necessarily rises.
B
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Refer to the table below. If at the current advertising level, A = $9,800, B = $15,000, and C = $8,200, to maximize profit, which of the following should the firm do?
The table above shows the current costs for a firm to advertising on the radio, television, and newspaper.
A) The firm should decrease its advertising on the television and increase its advertising in newspapers.
B) The firm should decrease its advertising on the radio and increase its advertising in newspapers.
C) The firm should decrease its advertising on the radio and decrease its advertising in newspapers.
D) The firm should increase its advertising on the television and decrease its advertising in newspapers.
If government forced a firm to charge a price equal to marginal cost in a situation where there are scale economies,
A. new firms would enter the industry. B. the firm would be forced to go bankrupt. C. positive economic profit would grow even larger. D. marginal cost would exceed average cost.
You just purchased a lawn mower from your next-door neighbor. How can we measure the gains from this transaction?
A. The actual benefit that you receive plus the actual benefit to your neighbor B. The gains to your neighbor minus the amount that you paid her C. The gains to you minus the amount that your neighbor paid for the mower D. The gains to you cancel out the gains received by your neighbor E. Just the benefit to your neighbor
Mortgage
What will be an ideal response?