If the money supply increased by 4 percent and velocity increased by 4 percent:
a. nominal GDP would not change
b. nominal GDP would increase by 1 percent.
c. nominal GDP would increase by 4 percent.
d. nominal GDP would increase by 8 percent.
d
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The heart of the supply-side economic program was to
A. raise taxes. B. lower taxes. C. raise government spending. D. put people to work in government jobs.
Marty's Seafood Company sells fish in a perfectly competitive market. The market price is currently $3 per pound. At its current level of production, long-run average cost at Marty's Seafood Company is $2.75 per pound
If Marty's Seafood Company is representative of firms in the industry, is this industry in equilibrium? Explain.
If the economy is in an inflationary period, what type of Fiscal Policy action should be undertaken?
(a) Decrease taxes. (b) Decrease the discount rate. (c) Increase taxes. (d) Increase government spending.
High unemployment is socially wasteful. Why?
What will be an ideal response?