The U.S. historical evidence
A) generally supports the quantity theory of money in the long run.
B) does not support the quantity theory of money.
C) demonstrates that there is no correlation between the money growth rate and inflation.
D) shows that a higher inflation rate causes an increase in the money growth rate.
A
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Price discrimination by a monopolist is less effective if the
A) good can be resold. B) good has no substitutes. C) monopolist can identify buyers by willingness to pay. D) good cannot be resold.
When the economy suffers a temporary negative supply shock and the monetary policy makers try to stabilize economic activity in the short run, then
A) aggregate demand curve shifts rightward. B) output will be at its potential. C) inflation rate will be higher. D) all of the above. E) both A and B.
One explanation that economists give for the persistence of poverty in LDCs falls under the category of nonscientific perceptions. An example of this is people in LDCs who
a. are unwilling to devote their energies to intellectual pursuits b. don't share the values associated with the means to acquire or the acquisition of the materialist world commonly identified with Westerners c. are not rational, utility-maximizing, economic agents d. value their children e. because of climate, require a lower calorie diet to survive
If Country A and Country B have the same total output, then the standard of living in these two countries can be different depending on:
A. population size. B. their respective inflation rates. C. their respective political systems. D. their relative geographic size.