Which of the following best characterizes the relationship between aggregate demand and aggregate consumption expenditures under the aggregate expenditure model?
a. loosely dependent
b. essentially equal
c. completely irrelevant
d. often misunderstood
b. essentially equal
Economics
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If events in a single country cause its economic activity to move up or down through a business cycle, what difference(s) might it make that the economy is closely integrated with other economies in the world?
What will be an ideal response?
Economics
Suppose that at a firm's current level of production the marginal product of capital is equal to 10 units, while the marginal rate of technical substitution between capital and labor is 2. Given this, we know the marginal product of labor must be
A. 5. B. 10. C. 20. D. It is not possible to say with the information given in the problem
Economics