The expected inflation rate is the inflation rate that people forecast and use to set the? _____ and? _____.
Fill in the blank(s) with the appropriate word(s).
Answer: money wage rate ; other money prices.
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Suppose Larry's Lariats produced 25,000 lassos and sold each for $10. What was the profit for this company?
A. $25,000 B. $250,000 C. $125,000 D. Cannot calculate profit without more information.
For an imaginary economy, the value of the consumer price index was 140 in 2013 and 146.5 in 2014 . The economy's inflation rate for 2014 was
a. 4.6 percent. b. 6.5 percent. c. 4.4 percent. d. 46.5 percent.
Suppose the firm or firms in the market for Good A face a downward-sloping demand curve, maximize profit by producing the quantity at which marginal revenue equals marginal cost, set the price higher than the marginal cost, and break even in long run equilibrium. Which one of the following market structures most likely exists for Good A?
A. Perfectly competition. B. Monopoly. C. Monopolistic competition. D. Oligopoly.
Ceteris paribus, if average prices in the U.S. economy fall, then the
A. Interest rate effect will lead to a lower quantity of U.S. output demanded. B. Foreign trade effect will lead to a higher quantity of U.S. output demanded. C. Profit effect will lead to a higher quantity of U.S. output demanded. D. Real balances effect will lead to a lower quantity of U.S. output demanded.