Refer to the table below. When output increases from 28 to 35 units, the marginal cost of the product is:
A. $4.44
B. $5.71
C. $6.00
D. $6.67
B. $5.71
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At short-run equilibrium inflation ________ and output equals ________.
A. equals the value determined by part expectations and pricing decisions; the level of short-run equilibrium output consistent with that inflation rate B. is stable; the level of output consistent with zero inflation C. equals the value consistent with potential output; the level of output consistent with zero inflation D. equals the value determined by past expectations and pricing decisions; potential
How do the fluctuations in the exchange rate influence the domestic price level?
What will be an ideal response?
Suppose a consumer has preferences over two goods, X and Y, which are perfect substitutes. In particular, two units of X is equivalent to one unit of Y. If the price of X is $1, the price of Y is $3, and the consumer has $30 of income to allocate to these two goods, how much of each good should the consumer purchase to maximize satisfaction?
a. 30 units of X and 0 units of Y b. 0 units of X and 10 units of Y c. 15 units of X and 5 units of Y d. 15 units of X and 0 units of Y
If the marginal propensity to consume (MPC) is 0.75, the value of the spending multiplier is:
A. 0. B. 1. C. 4. D. 5.