The price elasticity of supply measures the responsiveness of quantity supplied to a change in ____________.
a. quantity demanded.
b. demand
c. price.
d. supply.
c. price.
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When the Fed increases the money supply, the interest rate decreases. This decrease in the interest rate increases consumption and investment demand, so the aggregate-demand curve shifts to the right
a. True b. False Indicate whether the statement is true or false
Each of the following would increase the supply of U.S. dollars, shifting the supply curve for dollars to the right, except:
A. an increase in the real interest rate on foreign assets. B. an increase in U.S. real GDP. C. an increased preference for foreign-made goods. D. an appreciation of the U.S. dollar relative to other currencies.
If the economy's real GDP doubles in 18 years, we can
A. conclude that its average annual rate of growth is 12%. B. conclude that its average annual rate of growth is 4%. C. not say anything about the average annual rate of growth. D. conclude that its average annual rate of growth is 8%.
Monetarists assume that there is a powerful direct link between aggregate demand and
A) velocity. B) real money balances. C) wage rates. D) interest rates.