Menu costs are the:
a. cost of changing interest rates.
b. cost of converting currencies.
c. cost of changing prices.
d. cost of changing exchange rates.
Ans: c. cost of changing prices.
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According to this Application, what was the approximate value of Wal-Mart's value added in 2014?
A) $115 billion B) $286 billion C) $374 billion D) $661 billion
A normal good is a good for which demand increases as:
a. the income of consumers increases. b. its own price increases. c. the price of close substitutes decreases. d. the total number of consumers increases. e. a reflection of changing consumer tastes.
In periods of high inflation,
a. people who hold money gain b. the purchasing power of a dollar decreases c. the purchasing power of a dollar increases d. those who have loaned money to others gain e. people become reluctant to buy goods and services
Why do economists insist on emphasizing the difference between money and income? Why is this difference important in macroeconomics?