If you lend money at a nominal interest rate of 9 percent and the inflation rate is 1 percent, what real interest rate will you earn?
a. 3 percent
b. 4 percent
c. 8 percent
d. 12 percent
e. 15 percent
C
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The output gap is
A) the difference between target output and realized output. B) the difference between initial output and final output. C) the difference between market-clearing output and actual output. D) the difference between forecasted output and past output.
If a good is not produced, then there is no demand for it
Indicate whether the statement is true or false
In equilibrium, the price of a transferable emissions permit
A) is constrained to the amount the government first charged for it. B) equals the marginal cost of abatement for all firms. C) equals the marginal cost of abatement for the firm with the highest cost, and exceeds the marginal cost of abatement of other firms. D) equals the marginal cost of abatement for the firm with the lowest cost, and is less than the marginal cost of abatement of other firms. E) equals the marginal social cost of emissions.
Suppose that Danita owns a cupcake bakery. In the short run, at least one of her inputs is fixed. Provide one or two examples of the types of inputs that could be fixed in the short run