The quantity measure in the aggregate demand relationship is the:
A. total quantity of goods and services demanded in the economy.
B. total quantity of goods and services supplied in the economy.
C. market value of the total quantity of goods and services demanded in the economy.
D. market value of the total quantity of goods and services supplied in the economy.
C. market value of the total quantity of goods and services demanded in the economy.
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Starting from long-run equilibrium, a decrease in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; higher C. higher; potential D. lower; higher
What is meant by the "vicious cycle of poverty," and what are some of the requirements needed to escape this cycle?
What will be an ideal response?
Suppose that a firm has only one variable input, labor, and firm output is zero when labor is zero. When the firm hires 6 workers it produces 90 units of output. Fixed cost of production are $6 and the variable cost per unit of labor is $10 . The marginal product of the seventh unit of labor is 4 . Given this information, what is the total cost of production when the firm hires 7 workers?
a. $66 b. $76 c. $906 d. $946
What is an economic theory or model? What constitutes a "good" economic theory or model?
What will be an ideal response?