Given the strict quantity theory of money, if the quantity of money were decreased by 50 percent, prices would
What will be an ideal response?
fall by 50 percent.
You might also like to view...
Sweatshirts and tee-shirts are complements in consumption and the price of a sweatshirt increases. As a result, the demand for
A) sweatshirts will increase that is, the demand curve will shift rightward. B) tee-shirts will increase that is, the demand curve will shift rightward. C) sweatshirts will decrease that is, the demand curve will shift leftward. D) tee-shirts will decrease that is, the demand curve will shift leftward.
For the Bureau of Labor Statistics to place someone in the "unemployed" category, that person must
a. be available for work. b. have tried to find employment during the previous week. c. have previously been employed. d. All of the above are correct.
An economy with an expansionary gap will, in the absence of stabilization policy, eventually experience a(n) ________ in the inflation rate, leading to a(n) ________ in output.
A. decrease; increase B. increase; increase C. decrease; decrease D. increase; decrease
How could an expansionary fiscal policy increase real GDP and lower the price level?
A) if the aggregate supply increases equals the aggregate demand increase B) if aggregate supply decreases more than aggregate demand increases C) if aggregate supply increases more than aggregate demand increases D) if aggregate supply decreases less than aggregate demand decreases E) if aggregate supply decreases more than aggregate demand decreases