According to the equation of exchange, nominal Gross Domestic Product (GDP) equals
A. the price level times the income velocity of money.
B. the amount of actual money balances divided by the income velocity of money.
C. the amount of actual money balances times the income velocity of money.
D. the price level divided by the income velocity of money.
Answer: C
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If the wages of loggers went up, the supply of logs would:
a. fall, thereby shifting to the right. b. fall, thereby shifting to the left. c. rise, thereby shifting to the right. d. rise, thereby shifting to the left.
What is the main difference between the type of money that was used before the invention of the printing press and today?
What will be an ideal response?
We manufacturer automobiles given the production function q = 5KL where q is the number of autos assembled per eight-hour shift, K is the number of robots used on the assembly line (capital) and L is the number of workers hired per hour (labor)
If we use K=10 robots and L=10 workers in order to produce q = 450 autos per shift, then we know that production is: A) technologically efficient. B) technologically inefficient. C) maximized. D) optimal.
Consider the production possibilities frontier in the figure shown. As more and more cars are produced the opportunity cost of producing more cars:
A. decreases.
B. stays the same.
C. increases.
D. decreases then increases.