A fixed money-supply rule will have the greatest stabilizing effect on output when
A) money demand is unstable and commodity demand is stable.
B) both money and commodity demand are unstable.
C) both money demand and commodity demand are stable.
D) the velocity of money is unstable.
C
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Prices of final goods and services in Eduland have increased by 23% between Year 1 and Year 2. If the GDP deflator of Eduland in Year 1 was 100, the GDP deflator of Eduland in Year 2 is ________
A) 50 B) 112 C) 103 D) 123
Even though it is not a perfect measure, economists can use real GDP to
i. compare how the value of the goods and services produced in China have changed over the past 10 years. ii. look at the length of recessions and expansions in the United States. iii. compare the standard of living in China versus the standard of living in Vietnam. A) ii only B) i, ii and iii C) i and iii D) i and ii E) ii and iii
In the above figure, after the second worker is hired, the marginal product of labor is
A) increasing. B) diminishing. C) constant. D) zero.
A good that people must actually consume before they can determine qualities is called
A) a credence good. B) a search good. C) an experience good. D) a persuasive good.