When will an increase in aggregate demand not result in lower unemployment rates in the short run?
What will be an ideal response?
Ques. 2If the selling price of a firm's product is 500 and the estimated average cost of producing this product is 400, what is the firm's markup?
A) 15 percent B) 20 percent C) 25 percent D) 40 percent
Ques. 3Explain the effect of price elasticities of supply and demand on tax incidence.
What will be an ideal response?
Ques. 4If you liquidate 3,000 of your mutual fund and transfer the funds to your checking account, then initially, M1 will ________ and M2 will ________.
A) increase; decrease B) increase; not change
C) not change; not change D) not change; decrease
Ques. 5Changes in ________ do not affect the level of aggregate supply in the long run.
A) the number of workers in the economy B) the price level
C) the amount of accumulated capital equipment D) technology
Ques. 6If disposable income increases by 500 million, and consumption increases by 400 million, then the marginal propensity to consume is
A) 1.25. B) 0.8. C) 0.6. D) 0.4.
Ques. 7Refer to Table 20-9. Suppose that the data in the table above reflect the price levels in the economy. Given that data, we can say that the cost of living rose by ________ between 2015 and 2016?
A) 2 B) 5 C) 8 D) 11 E) 13
Ques. 8If, at a firm's projected sales level, the marginal cost is 125, the average cost is 150 and the markup is 20 percent, then its selling price is
A) 125. B) 150. C) 165. D) 180.
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