Most monetarists would say that:
A. the MV = PQ equation provides a better understanding of the macroeconomy than does
the C a + I g + X n + G = GDP equation.
B. most changes in the price level are explainable by changes in the level of real output.
C. the velocity of money is quite unstable.
D. all of these are true.
A. the MV = PQ equation provides a better understanding of the macroeconomy than does
the C a + I g + X n + G = GDP equation.
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Which of the following is a condition for efficiency in the output market?
A) MRT = MPL/MPK B) The marginal rate of substitution is the same for all customers. C) The marginal rate of technical substitution must be the same for all producers. D) The marginal rate of transformation must equal the marginal rate of substitution.
Thomas Robert Malthus believed
A) that food supplies would always be more than sufficient to feed the world's population. B) that the world's population would eventually outstrip food supplies. C) that population growth was good for the world. D) that population growth would eventually lead to an increase in the quality of life for everyone.
Define the following terms and explain their importance to the study of macroeconomics: a. open economy b. closed economy c. budget deficits and trade deficits d. international capital flows
What will be an ideal response?
If price rises, what happens to the quantity demanded for a product?
What will be an ideal response?