If the price level rises, the quantity of
A) nominal money people demand increases.
B) real money people demand increases.
C) nominal money people demand decreases.
D) real money people demand decreases.
A
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Assume the cost of certain inputs used to produce artificial Christmas trees increases and, at the same time, the economy moves into a recession, causing the incomes of consumers to decrease
Which of the following will happen to the equilibrium price and quantity of artificial Christmas trees? (Assume artificial Christmas trees are normal goods.) A) Price will increase; quantity cannot be determined. B) Price will decrease; quantity cannot be determined. C) Quantity will increase; price cannot be determined. D) Quantity will decrease; price cannot be determined.
If TruLite's factory workers receive an hourly wage, described by the equation; Employee compensation = $5.00 + 0.10Q, where Q is the number of light switches installed per hour, then:
A. effort is unimportant in the performance evaluation system of the firm. B. $5.00 is the basic incentive to produce. C. Q is entirely dependent on random elements in the production system. D. $0.10 is the incentive to increase effort.
Which of the following will not cause the aggregate supply curve to fall?
a. A reduction in a nation's level of productivity. b. A decrease in the nation's average price level (i.e., the implicit price index). c. An increase in input prices. d. A decrease in the value of the domestic currency. e. Natural disasters.
If policymakers expand aggregate demand, then in the long run
a. prices will be higher and unemployment will be lower. b. prices will be higher and unemployment will be unchanged. c. prices and unemployment will be unchanged. d. None of the above is correct.