An increase in money supply causes the real interest rate to ________ and output to ________ in the short run, before prices adjust to restore equilibrium
A) rise; rise
B) rise; fall
C) fall; rise
D) fall; fall
C
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At a price of $10, quantity demanded is 30 units. When the price rises to $11, quantity demanded is 24 units. What is the absolute price elasticity of demand?
A) 0.5 B) 0.43 C) 2.33 D) 6.0
Here are the costs of going to college: tuition $5,000; books $200; housing $1,000; food $1,000; lost income from work $10,000. Studying and work are equally desirable in your mind. Suppose that you could live at home at no cost to you if you worked, but must live on campus if you go to school. What is the total opportunity cost to you of going to school rather than working? (Food costs the same at school or home.)
A. $15,200 B. $7,200 C. $5,200 D. $16,200
If the growth rate for GDP was 5 percent and GDP in year 1 was 140, then GDP in year 2 would be:
A. 133.3. B. 135. C. 145. D. 147.
Tom and Jerry have two tasks to do all day: make dishes and build fences. If Tom spends all day making dishes, he will have make 16 dishes. If he instead devotes his day to building fences, Tom will build 4 fences. If Jerry spends his day making dishes, he will make 14 dishes; if he spends the day building fences, he will build 7 fences. At the end of the day, if Jerry was efficient with his resources, he could have produced:
A. 6 dishes and 2 fences. B. 10 dishes and 2 fences. C. 8 dishes and 2 fences. D. 12 dishes and 0 fences.