If the price index is 108.4 in period 1 and 118 in period 2, the inflation rate from period 1 to period 2 would be _____
a. 10 percent
b. 8.9 percent
c. 10.8 percent
d. 4.2 percent
b
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The factor of production called "labor" can be defined as the:
A. time spent by employees in the production of goods, but not services. B. fraction of total costs spent on people. C. number of worker-hours a business uses at a given time. D. number of people a business has access to at any given time.
Karl Marx predicted that the exploitation of workers would cause capitalism to self-destruct
a. True b. False Indicate whether the statement is true or false
Refer to the graph shown. If the price level is P0 the:
A. aggregate demand curve will shift up in the long run to restore equilibrium. B. short-run aggregate supply curve will shift up (to the left) in the long run to restore equilibrium. C. aggregate demand curve will shift down in the long run to restore equilibrium. D. short-run aggregate supply curve will shift down (to the right) in the long run to restore equilibrium.
Agricultural subsidies are known to cause overproduction and create other problems. Are there benefits from such subsidies? Explain
What will be an ideal response?