If real output is $25 billion, the price level is 5, and velocity is 5, what is the stock of money?
A. $1 billion
B. $10 billion
C. $25 billion
D. $625 billion
Answer: C
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If the deficit is 0.1 times GDP, the existing debt-GDP ratio is 0.5, and the growth rate of nominal GDP is 0.04, then the change in the debt-GDP ratio is
A. +0.08 B. 0. C. -0.075. D. +0.075.
Using Figure 48.1, modeling the attacks of September 11, 2001, you would show the impact of higher oil prices by using
A. Panel 2 only with a shift from ASB to ASA. B. Panel 1 only with a shift from ADA to ADB. C. Panel 1 only with a shift from ADB to ADA. D. Panel 1 to model the aggregate demand shock (ADB to ADA) and Panel 2 to model the aggregate supply shock (ASB to ASA).
Refer to Figure 12.6. Under a fixed exchange rate system, if the central bank can increase the output gap with expansionary policy and still maintain the fixed exchange rate, this would best be represented by a movement from ________ in Panel (a) and
a movement from ________ in Panel (b). A) point A to point B; point X to point Y B) point C to point A; point X to point Y C) point D to point C; point Y to point X D) point B to point D; point Y to point X
What word describes the money that a business pays for its inputs?
A. Production B. Cost C. Output D. Revenue