The long-run effect of an increase in the money supply when starting from full employment is to
A. increase real GDP only.
B. increase the price level only.
C. increase real GDP as the price level increases too.
D. increase both real GDP and the price level.
Answer: B
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Industrialized countries typically ________ their floating exchange rates. Developing countries often ________ their floating exchange rates
A) manage; peg B) peg; manage C) allow markets to determine; fix D) fix; manage E) fix; allow markets to determine
In its effort to maximize economic profit, a firm characterized as a price setter must determine:
A) only the price it should charge. B) only the quantity it should produce. C) both the price it should charge and the quantity it should produce. D) neither the price it should charge and the quantity it should produce as these are both determined by forces beyond the firm's control.
In years when teenagers become a greater percentage of the labor force,
A) the natural rate of unemployment falls. B) the natural rate of unemployment rises. C) the inflation rate rises. D) the inflation rate falls.
____ is the subjective measure of the physical and mental satisfaction that is anticipated from consumption
a. Demand b. Supply c. Recognition d. Utility e. Cognition