Give an example of how money functions as a unit of account
What will be an ideal response?
Money functions as a unit of account when it is used to in a price. For instance, a price of $60 dollars for a purse shows how the price of the purse is being measured in units of money.
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Refer to the budget line shown in the diagram above. Given the same money income, reductions in the prices of both products C and D will:
A) shift the budget line outward on the horizontal axis, but leave it anchored at "10" on the vertical axis. B) shift the budget line to the left. C) shift the budget line to the right. D) have no effect on the budget line.
Investment spending is procyclical. In the short run, are changes in investment affected more by changes in the expected marginal product of capital, or by changes in the user cost of capital?
What will be an ideal response?