In the long run, an increase in the stock of human capital
a. and increases in the money supply both make the price level rise.
b. and increases in the money supply both make the price level fall.
c. makes the price level rise, while increases in the money supply make prices fall.
d. makes the price level fall, while increases in the money supply make prices rise.
d
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The difference between the maximum amount a person is willing to pay for a given quantity of a good and the amount actually paid for that quantity is called
a. producer surplus b. the substitution effect c. price discrimination d. the income effect e. consumer surplus
When GDP is measured in "current prices" it is known as the:
A. real GDP. B. nominal GDP. C. real GNP. D. nominal GNP.
Jason is currently spending all of his income. For the last unit of Good X consumed Jason gets 20 utils and for the last unit of Good B consumed he gets 10 utils. The price of Good X is $10. The price of Good Y is $5. If Jason wants to maximize his utility he should
A. continue to purchase the same amount of Good X and Good Y. B. increase the consumption of Good X and decrease the consumption of Good Y. C. decrease the consumption of Good X and increase the consumption of Good Y. D. decrease the consumption of Good X and decrease the consumption of Good Y.
What is the primary goal of phasing out government assistance payments?
a. Providing an incentive to work b. Eliminating income taxes for the working poor c. Balancing work and leisure time d. Establishing a fair poverty line