Deficit spending boosts aggregate demand.

A firm produces 500 units per week. It hires 20 full-time workers (40 hours/week) at an hourly wage of $15 . Raw materials are ordered weekly and they costs $10 for every unit produced. The weekly cost of the rent payment for the factory is $2,250 . How do the overall costs breakdown?

a. total variable cost is $17,000 . total fixed cost is $2,250; total cost is $19,250 b. total variable cost is $12,000 . total fixed cost is $7,250; total cost is $19,250 c. total variable cost is $5,000 . total fixed cost is $14,250; total cost is $19.250 d. total variable cost is $5,000 . total fixed cost is $2,250; total cost is $7,250

Which of the following can be the best measure of the standard of living in a country?

a. Nominal GDP plus information about non-market indicators such as health and education b. Real GDP plus information about non-market indicators such as health and education c. GDP deflator plus information about base year pricing d. Per capita GDP plus information about non-market indicators such as health and education