Which of the following macroeconomic variables is procyclical and lags the business cycle?
A. Employment
B. Business fixed investment
C. Stock prices
D. Nominal interest rates
Answer: D
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Total fixed cost is the cost of
A) labor. B) production. C) a firm's fixed factors of production. D) only implicit factors of production. E) only explicit factors of production.
What does the average product of labor equal?
What will be an ideal response?
The difference between the interest rate on loans to households and firms and the interest rate on completely safe assets is known as ________
A) the fed funds rate B) the discount rate C) asymmetric information D) the credit spread
Recent financial turmoil has caused many people to increase saving and to prefer assets that are perceived to be relatively safe and liquid. What are the likely effects on M1 and M2?
What will be an ideal response?