You lend $5,000 to a friend for one year at a nominal interest rate of 10%. The CPI over that year rises from 180 to 190. What is the real rate of interest you will earn?

Assume a factory that currently employs 25 workers is considering adding another 5 workers to its payroll. Economists would classify this as:

A) a short-run decision. B) a long-run decision. C) neither a short-run nor a long-run decision. D) both a short-run and a long-run decision.

_____ is the locus of the minimum points of various short-run average cost curves depicting different plant sizes

a. Long-run marginal cost b. Expansion path c. Long-run average cost d. Isocost