An economy's production function has the constant-returns-to-scale property. If the economy's labor force doubled and all other inputs stayed the same, then real GDP would
a. stay the same.
b. increase by exactly 50 percent.
c. increase by exactly 100 percent.
d. increase, but not necessarily by either 50 percent or 100 percent.
d
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The M2 measure of the money supply includes
a. M1 plus credit cards. b. M1 plus savings deposits, small time deposits, and money market funds. c. M1 plus Eurodollars. d. M1 minus Eurodollars.
According to liquidity preference theory, an increase in the price level shifts the
a. money demand curve rightward, so the interest rate increases. b. money demand curve rightward, so the interest rate decreases. c. money demand curve leftward, so the interest rate decreases. d. money demand curve leftward, so the interest rate increases.
A tax that is imposed on an imported good is called a
A) tariff. B) quota. C) government license. D) patent.
________ are financial securities that represent promises to repay a fixed amount of funds
A) Bonds B) Stocks C) Interest rates D) Mutual funds