According to the quantity theory of money, if the money supply grows at 6%, real GDP grows at 2%, and the velocity of money is constant, then the inflation rate will be
A) 8%. B) 6%. C) 4%. D) 2%.
C
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By making exchange ________, money allows for specialization and higher ________
A) more difficult; costs B) more difficult; productivity C) easier; costs D) easier; productivity
If MPPa/Pa > MPPb/Pb, then the proportions of these two inputs is optimal
a. True b. False Indicate whether the statement is true or false
Breezey Cola and High-Ten Dew are both large soft drink manufacturers that cover almost the entire market for cola. At the same time, there are 45 small firms that produce pulpy fruit juice. In the given scenario, which of the following statements is true?
a. The cola industry is likely to be a monopoly, while the pulpy juice industry is likely to be monopolistically competitive. b. The cola industry is likely to be monopolistically competitive, while the pulpy juice industry is likely to be an oligopoly. c. The cola industry is likely to be an oligopoly, while the pulpy juice industry is likely to be monopolistically competitive. d. Both industries operate in an oligopolistic market structure.
A shift in the long-run aggregate supply curve will change:
A. neither output nor the price level. B. both output and the price level. C. the price level but not output. D. output but not the price level.