Other things the same, an increase in velocity means that
a. transactions per dollar increase so the price level rises.
b. transactions per dollar increase so the price level falls.
c. transactions per dollar decrease so the price level rises.
d. transactions per dollar decrease so the price level falls.
a
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The use of a backward-L shaped aggregate supply curve allows us to ________ in a way that other shapes would not.
A. deal with shifting curves B. consider various levels of prices C. create an equilibrium D. consider different macroeconomic points of view
Which of the following is an example of a product that is sold primarily in a local market?
A. Milk B. Butter C. Oil D. Cheese
For a monopolist to sell more units of output
A. the price must be increased. B. demand must become more elastic. C. the other competing firms must sell fewer units. D. the price must be reduced.
You read online that, at current rates of production, the yearly world supply of food is sufficient to feed the projected 2050 population of earth, but that after 2050 there will be massive starvation. This prediction appears to assume that:
A. the long-run supply of food is perfectly inelastic. B. the long-run supply of food is perfectly elastic. C. the short-run supply of food is perfectly elastic. D. the short-run elasticity of supply of food is greater than long-run elasticity of supply.