If you believe that velocity is constant and that the aggregate supply curve is vertical, then the quantity theory of money would predict that a doubling of the money supply would cause a doubling of
A. nominal output and real output.
B. nominal output and no change in real output.
C. real output and no change in nominal output.
D. the price level and real output.
Answer: B
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One of the main reasons behind hyperinflation episodes is:
A) a decrease in real GDP. B) large government budget deficits. C) high tax rates. D) a decrease in the demand for consumer goods.
For a monopsonist, the marginal factor cost curve will be above the supply of labor curve. The marginal factor cost curve is above the supply curve because
A) the monopsonist will take advantage of labor and offer them lower wages. B) in order for the monopsonist to sell an additional unit of the good, the price of the good must be lowered. C) in order for the monopsonist to hire more labor the monopsonist must also purchase more capital. D) the monopsonist will have to pay all workers a higher wage rate than the current wage rate if it wants to hire more workers.
Explain the basic structure of the Federal Reserve System and how it makes major policy decisions.
What will be an ideal response?
If your cell phone bill is $40 when you use up to 300 minutes per month or $80 when you use between 300 and 400 minutes per month, the marginal cost of the 301st minute is:
A. $40. B. $80. C. $0.27. D. $0.13.