During the 2008 financial crisis velocity decreased. This means that the rate at which money changed hands
a. decreased. Other things the same, a decrease in velocity decreases the price level.
b. decreased. Other things the same, a decrease in velocity increases the price level.
c. increased. Other things the same, an increase in velocity decreases the price level.
d. increased. Other things the same, an increase in velocity increases the price level.
a
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Over the last twenty years, the U.S. has generally had a current account ________ and a capital account ________
A) surplus, surplus B) surplus, deficit C) deficit, surplus D) deficit, deficit
Which of the following would be considered a "leisure" activity by economists?
A. Mopping the floor at McDonald's for minimum wage B. Mopping your kitchen floor C. Folding sweaters while working at the Gap D. None of these activities would be considered leisure.
If in some year nominal GDP was $10 trillion and real GDP was $4 trillion, what was the GDP deflator?
a. 25. b. 40. c. 250. d. 400.
Exhibit 15-1 Production possibilities curves
In Exhibit 15-1, the production possibilities curves of wheat and corn for Nabia and Pada are presented. In Nabia the cost of producing one more unit of wheat is equal to:
A. 4 units of corn. B. 4 units of wheat. C. 1/4 unit of corn. D. 15 units of corn.