Assume that velocity is constant in the long run. Which of the following equations correctly describes the quantity equation in terms of percentage rate of change
A. % chM รท % chP = % chY
B. % chM - % chY = % chP
C. % chM x % chY = % chP
D. % chM - % chP = % chYf
Ans: B. % chM - % chY = % chP
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If labor were completely mobile between Muncie, Indiana, and Lexington, Kentucky, and the cost of living was the same in each city, we would expect to find that
a. accountants in Muncie earn the same wage rate as garbage collectors in Lexington b. garbage collectors in Lexington earn more than accountants in Muncie c. garbage collectors in Muncie earn the same wage rate as accountants in Lexington d. all accountants in Lexington would earn the same wage rate e. accountants in Muncie earn the same wage rate as accountants in Lexington
In the short-run macro model, the change in inventories will
a. equal output minus aggregate expenditures b. trigger a price change c. equal investment minus depreciation d. equal sales minus investment e. be matched by an equal and opposite change in the subsequent period
During the first 125 years of the United States,
a. there were no constitutional constraints on the spending of the federal government. b. real spending per person by the federal government rose by a factor of 60. c. most of the government spending was undertaken at the state and local levels. d. most of the government spending was undertaken at the federal level.
Which statement is false?
A. Winner-take-all markets are spreading. B. The U.S. has the highest hourly wage and fringe benefits of all the industrial nations. C. Real hourly wages in the U.S. were lower in 1994 than they were in 1986. D. None of these statements are false.