Refer to the table below. If the market price for the firm's product is $80, the firm will:
The following table shows cost data for a firm that is selling in a purely competitive market.
A. Produce 4 units
B. Produce 5 units
C. Produce 6 units
D. Shut down
A. Produce 4 units
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Assume that the central bank increases the reserve requirement. If the nation has highly mobile international capital markets and a flexible exchange rate system, what happens to the GDP Price Index and current international transactions in the context of the Three-Sector-Model?
a. The GDP Price Index and current international transactions remain the same. b. The GDP Price Index falls, and current international transactions become more negative (or less positive). c. The GDP Price Index rises, and current international transactions becomes more negative (or less positive). d. The GDP Price Index rises, and current international transactions remain the same. e. There is not enough information to determine what happens to these two macroeconomic variables.
The total demand for money curve will shift to the right as a result of:
A. an increase in nominal GDP. B. an increase in the interest rate. C. a decline in the interest rate. D. a decline in nominal GDP.