The stickiness of wages and prices will cause
A) changes in aggregate demand to have short-run effects on real GDP.
B) changes in aggregate demand to have no short-run effects on real GDP.
C) changes in aggregate demand to have long-run effects on real GDP.
D) changes in aggregate demand to have both short-run and long-run effects on real GDP.
A
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Suppose the marginal product of labor is 8 and the marginal product of capital is 2. If the wage rate is $4 and the price capital is $2, then in order to minimize costs the firms should use:
a. More capital and less labor B. More labor and less capital c. Three times more capital than labor d. None of the statements associated with this question are correct
Refer to Table 8.2. If Sherry produces one pair of earrings, her total variable costs are A) $50. B) $100. C) $150. D) indeterminate from this information.
When disposable income is 2000, how much is saving?
Refer to Figure 15-1. In the figure above, the money demand curve would move from Money demand1 to Money demand2 if
A) the price level increased. B) real GDP decreased. C) the interest rate decreased. D) the Federal Reserve sold Treasury securities.