The real balances effect occurs because a higher price level will reduce the real value of people's:
a. financial assets.
b. wages.
c. unpaid debt.
d. physical investments.
a
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A price index measures:
A. the average price of a given class of goods or services relative to the price of the same goods and services in a base year. B. the price of specific good or service. C. only the prices that change. D. the change in the price of a specific good or service.
The following is a total-product schedule for a resource. Assume that the quantities of other resources the firm employs remain constant.Units of ResourceTotal Product124242460680792If the product the firm produces sells for a constant $3 per unit, the marginal product of the fourth unit of the resource is
A. $15. B. $18. C. $27. D. $45.
Sustained economic growth in the U.S. has been primarily a product of which of the following factors?
(a) War and exploitation of natural resources (b) Capital accumulation, increases in capital and labor productivity, and technological advancements (c) Restricted trade (d) Government policies and market interventions
Investment in capital accumulation, as well as investment in education and other labor productivity enhancing programs, is necessary for economic growth
a. True b. False Indicate whether the statement is true or false