If aggregate demand shifts outward, the result will be inflation
a. True
b. False
Indicate whether the statement is true or false
True
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As more output is produced, the marginal product of labor declines
A) because of the law of diminishing returns. B) because the firm's marginal revenue declines. C) if the firm's output supply curve is inelastic. D) if firms reduce the wage paid to labor.
The Bretton Woods agreement did all of the following except
a. set up the International Monetary Fund b. name the U.S. dollar as the key reserve currency c. set the price of gold at $35 per ounce d. fix exchange rates e. return the international monetary system to the gold standard
Investment, as defined by economists, would not include which of the following? Ford
A) buys a new robotic machine (from a plant in Ohio) to assemble cars. B) adds 1,000 new cars to inventories. C) builds another assembly plant in the United States. D) buys U.S. government bonds.
When a firm purchases a part of its supplies from any one of a large number of potential suppliers at the current market price without long-term commitments, it is:
A. making a spot market purchase. B. integrating downstream. C. practicing arbitrage. D. integrating upstream.