An isocost line:
A. represents the combinations of K and L that cost the firm the same amount of money.
B. has a convex shape.
C. represents the combinations of w and K that cost the firm the same amount of money.
D. represents the combinations of r and w that cost the firm the same amount of money.
Answer: A
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C = $40 million + 0.6(1 - 0.2)Y I = $35 million G = $31 million NX = -$6 million Based on the above data, the equilibrium level of GDP is
A) $113.6 million. B) $192.3 million. C) $208.3 million. D) $833.3 million.
One reason the supply of cell phones has increased is:
A. cell phone towers are much more common. B. better technology allows them to be produced more cheaply. C. consumer preferences for cell phones has increased. D. expectations of the near future are that no landlines will exist.
The inverse trade-off between inflation and unemployment is known as the:
a. Laffer curve. b. aggregate supply curve. c. Phillips curve. d. aggregate demand curve. e. Keynesian curve.
If a variable other than the price level changes, the AD curve shifts
a. True b. False