If M increases faster than V decreases:
a. nominal GDP increases
b. nominal GDP decreases.
c. nominal GDP stays the same.
d. there is an indeterminate effect on nominal GDP.
a
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Diseconomies of scale occur when
A) long-run average costs fall as a firm expands its plant size. B) long-run labor costs rise as a firm increases its output. C) short-run average costs rise as a firm expands its plant size. D) long-run average costs rise as a firm increases its output.
An establishment survey is used to calculate
A) the unemployment rate. B) the level of payroll employment. C) both the unemployment rate and the level of payroll employment. D) neither the unemployment rate nor the level of payroll employment.
The most powerful tool unions have at their disposal when bargaining with management is
A) the Taft-Hartley Act. B) the ability to strike. C) the secondary boycott. D) the power of pure competition.
The general rule for profit maximization in a firm is to
A. set marginal revenue equal to marginal cost. B. reduce fixed costs by expanding output. C. set average cost at its minimum. D. maximize sales revenue.