Inflation
a. leads people to use more resources to reduce money holdings. There is no way it can make labor markets work more efficiently.
b. leads people to use more resources to reduce money holdings. However, it can make labor markets work more efficiently.
c. leads people to use fewer resources to reduce money holdings. There is no way it can make labor markets work more efficiently
d. leads people to use fewer resources to reduce money holdings. However, it can make labor markets work more efficiently.
b
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If P equals the price level expressed as an index number and $V equals the value of the dollar, then:
A. P = $V - 1. B. $V = 1/P. C. 1 = $V/P. D. $V = P - 1.
If you know that when a firm produces 8 units of output, average fixed cost is $12.50 and average variable cost is $81.25, then the average total cost associated with this output level is
A. $880.00. B. $97.78. C. $750.00. D. $93.75.