In the Keynesian model with a variable money wage and variable price level, an increase in the money supply lead to a rise in all of the following except
a. price level.
b. output.
c. real wage.
d. level of employment.
e. all of these rise
C
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If we compare regulating a natural monopoly using a marginal cost pricing rule to using an average cost pricing rule, we see that output is
A) greater with marginal cost pricing, but average cost pricing allows for costs to be covered. B) the same under both cases, but the profit is greater with average cost pricing. C) greater under average cost pricing, but profits are greater with marginal cost pricing. D) the same but profits are greater with marginal cost pricing. E) greater with marginal cost pricing, and the firm's profit is larger with marginal cost pricing.
All of the following are sources of comparative advantage except
A) technology. B) climate and natural resources. C) a strong foreign currency exchange rate. D) relative abundance of labor and capital.
Suppose the annual growth rate of real GDP for the nation of Vicuna is 8%, the growth rate of velocity is 0%, and the growth rate of the money supply is 12%
a. What is the current rate of inflation? b. What will happen to the inflation rate if the growth of the money supply increases to 16%? c. What will happen to the inflation rate if the growth of the money supply increases to 16%, and at the same time, the growth rate of velocity increases to 4%?
Tax revenues increase in direct proportion to increases in the size of the tax
a. True b. False Indicate whether the statement is true or false