Cross-country figures indicate that
a. countries with high rates of monetary growth also experience high inflation.
b. countries with high rates of monetary growth experience low inflation.
c. monetary growth rates and inflation are unrelated.
d. inflation is primarily the result of restrictive monetary policy.
A
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The equilibrium wage and quantity of labor in the market for skilled workers is determined by
A) the demand and supply of labor. B) the strength of labor unions. C) the market value created by the output of these skilled workers. D) the monopsony power of firms.
People hold money even during inflationary episodes when other assets prove to be better stores of value. This can be explained by the fact that money is
A) extremely liquid. B) a unique good for which there are no substitutes. C) the only thing accepted in economic exchange. D) backed by gold.
Suppose a market basket of goods and services costs $1,000 in the base year and the consumer price index (CPI) is currently 110 . This indicates the price of the market basket of goods and services is now:
a. $110. b. $1,000. c. $1,100. d. $1,225.
A monopolist can choose a price & quantity combination that is above the demand schedule
a. True. b. False.