What do most economists believe concerning the relation between the price level and real output?
Most economists believe that in the long run, real variables are not affected by nominal variables. So, for example, changes in the money supply do not change real variables in the long run. However, most economists believe that nominal variables do change real variables in the short run. In the short-run prices and wages may be fixed based on the expected price level. If the actual price level differs from the expected price level, real variables are affected.
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Exports ________ GDP and imports ________ GDP
A) decrease; decrease B) decrease; increase C) increase; increase D) increase; decrease
One part of a perfectly competitive trout farm's supply curve is its
A) marginal cost curve below the shutdown point. B) entire marginal cost curve. C) marginal cost curve above the shutdown point. D) average variable cost curve above the shutdown point. E) marginal revenue curve above the demand curve.
A new area of economics studies situations in which people appear to be making choices that do not appear to be economically rational. This area is called
A) irrational economics. B) social economics. C) behavioral economics. D) new wave economics.
We think about the cost of supplying labor as the:
A. the additional equipment and training that is required when hiring a person. B. input costs that go into producing a unit of labor. C. opportunity cost of the individual's time. D. average wage in the labor market.