If we consider the equation PAE = A + bY the part that corresponds to the MPC when we make simplifying assumptions is:
A. Y
B. PAE
C. b
D. A
Answer: C
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Javier lost his job as a chemical engineer when the company he worked for shut down, so he took a full time job as a convenience store clerk to help pay the bills. Javier is now considered
A) a discouraged worker. B) underemployed. C) unemployed. D) out of the labor force.
Firms hire labor at the point where the
A) nominal wage rate equals the marginal product of labor. B) real wage rate equals the marginal revenue product of labor. C) nominal wage rate equals the marginal revenue product of labor. D) real wage rate equals the marginal revenue product of capital.
Which is the broadest price index reported in the United States?
A) the CPI-U B) the GDP deflator C) the consumer price index D) the producer price index
The dollar return on a foreign investment is less than the interest rate on the foreign asset, if the foreign currency depreciates against the U.S. dollar between the purchase date and the maturity date
a. True b. False Indicate whether the statement is true or false