What is the quantity theory of money?
What will be an ideal response?
The quantity theory of money is the proposition that in the long run an increase in the quantity of money creates an equal percentage increase in the price level.
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"A profit-maximizing monopoly never produces an output in the inelastic range of its demand curve." True or false? Explain
What will be an ideal response?
In the late 1990s, the more than expected increases in tax revenues were the result of
A. rapid economic growth. B. rapid increases in the national debt. C. rising rates of inflation, and therefore, nominal incomes. D. rising balance of trade surpluses and the import duties they generated.
Either supply shocks or adjusting inflation expectations can shift the short run Phillips curve
a. True b. False Indicate whether the statement is true or false
List and define any two of the costs of high inflation