Mean
What will be an ideal response?
Average
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The concept that producing goods and services generates the means and the willingness to purchase other goods and services is
A) the Keynesian approach. B) money illusion. C) Say's law. D) cost-push inflation.
If at the prevailing interest rate the quantity of money demanded is $2 trillion, and the supply of money is $1.5 trillion, then which of the following istrue?
a. There is a shortage of money, and consequently interest rates must fall in order to achieve an equilibrium in the money market. b. There is a surplus of money, and consequently interest rates must fall in order to achieve an equilibrium in the money market. c. There is shortage of money, and consequently interest rates must rise in order to achieve an equilibrium in the money market. d. There is a surplus of money, and consequently interest rates must rise in order to achieve an equilibrium in the money market.
Assume that workers have perfect information about changes in inflation. Which of the following statements is true in this context?
a. Wage rates will not adjust immediately to the price level on account of the fixed contracts. b. The aggregate supply curve of the economy will become perfectly elastic. c. The aggregate supply curve will shift to the right. d. Nominal wage rates will always exceed the real wage rate. e. The economy will continue to produce at the potential level of real GDP.
When the quantity of a good bought and sold is below the market equilibrium quantity, the loss of total surplus that results is called:
A. producer surplus. B. deadweight loss. C. total surplus. D. consumer surplus.