The long-run aggregate supply when resources are fully employed
A) has no relationship with the production possibilities curve.
B) will always be associated with a point outside the production possibilities curve.
C) will always be associated with a point on the production possibilities curve.
D) is determined by demand.
C
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The slope of the aggregate demand curve indicates that ________ in the inflation rate leads to ________ of real GDP demanded by households and firms
A) an increase; a higher level B) a decrease; a lower level C) a decrease; a higher level D) an increase; no change in the level
If at 4,000 units, the price the firm can charge is higher than its AVC and lower than its ATC, then the firm will earn a profit
Indicate whether the statement is true or false
The study by economists Cox and Alm found
a. inequality in consumption is much smaller than inequality in annual income. b. inequality in consumption is slightly smaller than inequality in annual income. c. inequality in consumption is slightly larger than inequality in annual income. d. inequality in consumption is much larger than inequality in annual income.
A painting is currently worth $100,000, and is expected to maintain its real value for three years. The real interest rate is expected to remain constant at 10%. What is the present value of the painting's expected price at the end of the third year?
A) $75,131 B) $88,899 C) $96,153 D) $100,000 E) $70,000