Businesses have two types of cost: fixed and variable.
Answer the following statement true (T) or false (F)
True
We can think of businesses as having two types of costs: variable (short-term) costs and fixed (long-term) costs.
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In the above figure, if we start at AD1 and SRAS1, and the money supply increases unexpectedly, what would be the short-run equilibrium even with rational expectations?
A) P1 B) E2 C) E3 D) E1
Other things remaining the same, which of the following is likely to happen if an industry introduces labor-saving technology in production?
A) There will be a decrease in both the wage rate and the employment levels in the industry. B) There will be a rise in both the wage rate and the employment levels in the industry. C) There will be a rise in the wage rate and a decrease in the employment levels in the industry. D) There will be a decrease in the wage rate and a rise in the employment levels in the industry.
What does the demand curve for money look like? Why?
What will be an ideal response?
A government with a national debt that is large and growing relative to the size of the economy will
a. eventually find it difficult to borrow in global credit markets. b. be able to borrow at lower interest rates than countries with less outstanding debt. c. have to allocate a large and growing amount of tax revenue to the payment of interest on the outstanding debt. d. do both a and c.