If some of a person's wealth is in cash, it follows that
A) this person's monetary wealth will change as the price level changes.
B) this person's monetary wealth will not change as the price level changes.
C) this person is wealthier than a person who holds all his wealth in nonmonetary form.
D) a and c
E) b and c
A
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The average output produced per worker is one way of measuring
A) inflation. B) the interest rate. C) employment. D) productivity.
If the price of apples rises from $.50 to $1.50 and quantity demanded falls from 1,000 to 900, we can conclude that the price elasticity for apples is
a. -20. b. inelastic. c. elastic. d. unitary.
If firms are producing at a profit-maximizing level of output where the price is less than the average total cost:
A. accounting profits will be zero. B. accounting profits must be positive. C. economic profits are negative. D. economic profits may be positive.
The short-run aggregate supply curve in modern Keynesian analysis is
A. horizontal. B. upward sloping. C. vertical. D. downward sloping.