Suppose the short-run production function is q = 10 ? L. If the wage rate is $10 per unit of labor, then AFC equals
A) 0.
B) 1.
C) 10/q.
D) It cannot be determined from the information provided.
D
Economics
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Given a fixed nominal interest rate on a loan, unanticipated inflation:
a. decreases the burden of paying off the loan. b. increases the burden of paying off the loan. c. does not alter the burden of paying off the loan. d. benefits savers.
Economics
In the short run,
a. the labor market is always in equilibrium b. actual output can deviate from potential output c. crowding out is always complete d. total output is independent of spending e. spending is independent of total income
Economics