What happens to long-run aggregate supply when there is an increase in the money supply?
a) It increases.
b) It decreases.
c) It stays the same.
d) It fluctuates based on the changes in price levels.
Ans: c) It stays the same.
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The investment function is represented by
A) an inverse relationship between the interest rate and the value of planned investment. B) the direct relationship between the interest rate and the value of planned investment. C) the indirect relationship between taxes and government spending. D) the direct relationship between taxes and government spending.
Which of the following increases the quantity of money demanded?
A) a fall in the nominal interest rate B) a rise in the nominal interest rate C) a rise in the inflation rate D) a rise in the real interest rate E) an increase in real GDP
The table above gives the demand and supply schedules for the housing market in a small town. If a rent ceiling of $200 a month is imposed, what is the quantity demanded, the quantity supplied, and the shortage of housing?
What will be an ideal response?
When marginal private cost is equal to marginal social cost,
A. the activity in question generates no positive externality. B. the activity in question generates no negative externality. C. all positive externalities have been internalized. D. all negative externalities have been internalized. E. b or d