With an increase in the demand for a good, if prices are not allowed to increase:
A) social surplus will be maintained at maximum.
B) there will be no incentive for firms to increase the quantity supplied of the good.
C) a surplus will occur in the market.
D) there will be an increase in overall efficiency in the market.
B
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Friedman and Schwarz argue that money is not neutral because
A) theoretical models of the economy don't show monetary neutrality. B) money is a leading, procyclical variable. C) they found several historical incidents in which changes in the money supply were not responses to macroeconomic conditions, and output moved in the same direction as money. D) they found no evidence that productivity changes or changes in government spending contributed to business cycles; only monetary changes preceded every recession.
The percentage of households with a Head Start enrollee where there are two parents present and where both have jobs is
A. 67%. B. 20%. C. 33%. D. 50%.
If the supply of money increases, the long-run aggregate supply curve suggests that output will not change but the price level will
Indicate whether the statement is true or false
According to the classical model shown above, an autonomous decline in investment shifts the investment schedule to the left. Furthermore, the equilibrium interest rate declines. Distance A describes an interest rate induced
a. decline in saving, which is an equal increase in consumption. b. increase in investment. c. decrease in investment. d. decline in saving, which exceeds the increase in consumption.