Aggregate supply is the:
A. total quantity of the production of all the households in the economy.
B. market value of the total quantity of goods and services supplied in the economy.
C. total quantity of goods and services demanded in the economy.
D. market value of the total quantity of goods and services demanded in the economy.
Answer: B
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From uncovered interest parity, we know that when the domestic currency is expected to depreciate, the domestic interest rate should be
A) greater than the foreign interest rate B) greater than the foreign return C) less than the foreign interest rate D) less than the foriegn return
For a certain firm, the 100th unit of output that the firm produces has a marginal revenue of $11 and a marginal cost of $10 . It follows that the
a. production of the 100th unit of output increases the firm's profit by $1. b. production of the 100th unit of output increases the firm's average total cost by $1. c. firm's profit-maximizing level of output is less than 100 units. d. production of the 101st unit of output must increase the firm's profit by more than $1.