According to the quantity theory of money, if velocity of money is constant, a 5 percent increase in money supply will lead to a 0.25 percent increase in nominal GDP
a. True
b. False
Indicate whether the statement is true or false
False
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Suppose that the total production of an economy consists of 4 oranges and 10 candy bars, each orange sells for $0.25, and each candy bar sells for $0.50. What is the market value of production in this economy?
A. $6.00 B. $5.00 C. $0.75 D. $1.00
Answer the following statements true (T) or false (F)
1. A nation that imports more than it exports has a surplus balance of trade. 2. Whenever planned injections exceed planned leakages, total spending is less than total output. 3. Taxes are a leakage from the circular flow. 4. The GDP is the current market value of final goods and services produced by the nation’s economy over a period of time. 5. Constant-dollar GDP and real GDP are the same thing.
The underlying reason for the upward sloping nature of the supply curve is that
A. the production of most goods comes with increasing marginal benefits. B. the consumption of most goods comes with decreasing marginal utility. C. the production of most goods comes with increasing marginal costs. D. the consumption of most goods comes with increasing marginal utility.
An explicit cost is:
A. omitted when accounting profits are calculated. B. an implicit cost to the resource owner who receives that payment. C. always in excess of a resource's opportunity cost. D. a money payment made for resources not owned by the firm itself.