What is the neutrality of money with respect to the quantity theory of money?
A. The money supply can affect the growth rate of prices (inflation) in the long run.
B. The money supply cannot affect the growth rate of real GDP in the long run.
C. The money supply can affect the growth rate of the real GDP in the short run.
D. All of the above.
Answer: D. All of the above.
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The above figure shows the Lorenz curves for four different countries. Which of the following statements CANNOT be made on the basis of the graph?
A) Incomes are distributed unequally in all four countries. B) Income distribution in country D is the most unequal among the four countries. C) Incomes are higher in country A than in country B. D) Income distribution is more equal in country B than in country D.
Which of the following is a reason why the growth rates of high-income countries can be lower than that of low-income countries?
a. In high-income countries, the invention of new technology is difficult, expensive, and time consuming. b. In high-income countries, the invention of new technology is subject to diminishing marginal returns. c. In high-income countries, the marginal cost of production increases as output increases. d. In high-income countries, the average cost of production increases as output increases.
When marginal product is negative, the slope of the total product curve must be negative.?
Indicate whether the statement is true or false.
Suppose the price of gasoline in July 2017 averaged $2.35 a gallon and 15 million gallons a day were sold. In October 2017, the price averaged $3.05 a gallon and 14 million gallons were sold. If the demand for gasoline did not shift between these two
months, use the midpoint formula to calculate the price elasticity of demand. Indicate whether demand was elastic or inelastic. What will be an ideal response?