What two things determine the cost of production?
What will be an ideal response?
(1.) The technologies which are available.
(2.) Input prices.
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Refer to Table 2.7. Use the information in the table to calculate the values for national income, personal income, and disposable personal income
What will be an ideal response?
In the monetary small open-economy model with a flexible exchange rate, an increase in the domestic money supply increases
A) domestic output, but has no effect on the domestic price level or the nominal exchange rate. B) the domestic price level, but has no effect on domestic output or the nominal exchange rate. C) the nominal exchange rate, but has no effect on domestic output or the domestic price level. D) the domestic price level and the nominal exchange rate, but has no effect on domestic output.
You can also think of interest as:
A. the time it takes a bond to mature. B. the cost of inflation. C. the price of borrowing per dollar D. All of these statements are true.
In order to predict changes in aggregate demand, it must be possible to forecast
A. changes in the demand for investment goods. B. changes in the demand for consumer goods. C. changes in the demand for money. D. All of the choices are correct.