If real GDP falls from one period to another and the price level stays the same, we can conclude that
A. Nominal GDP also decreased.
B. Inflation increased.
C. Nominal GDP increased.
D. NDP also decreased.
Answer: A
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Assuming all else equal, if the real interest rate decreases, it will lead to:
A) a decrease in the quantity of credit demanded by a firm. B) the credit demand curve of a firm to shift to the right. C) an increase in the quantity of credit demanded by a firm. D) the credit demand curve of a firm shifts to the left.
The money supply changes if:
a. Oil and other natural resource prices rise. b. GDP rises. c. A nation's preferred asset ratios change. d. The domestic currency depreciates.
The slope of the budget constraint is all of the following except
a. the relative price of two goods. b. the rate at which a consumer can afford to trade one good for another. c. the marginal rate of substitution. d. constant.
Which of the following is characteristic of a pure monopolist's demand curve?
A. Average revenue is less than price. B. Its elasticity coefficient is 1 at all levels of output. C. Price and marginal revenue are equal at all levels of output. D. It is the same as the market demand curve.