In an economy in which velocity of money in circulation is constant and real output grows at an average rate of 3 percent per year, a 5 percent average rate of growth in the money supply would result in a:
a. constant price level
b. slowly increasing price level.
c. slowly decreasing price level.
d. stable 4 percent growth in real GDP.
e. stable 4 percent growth in nominal GDP.
b
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Keynes believed the government should
a. control wages and prices to ensure full employment. b. ensure that workers earned high wages and full employment. c. ensure that aggregate demand was high enough to ensure full employment. d. ensure aggregate demand was high enough to control the economy.
Using a graph, explain the relationship between average cost and marginal cost.
What will be an ideal response?What will be an ideal response?
Which is especially useful for comparing data?
a. line graph b. bar graph c. pie graph d. circle graph
Refer to Figure 13A.1. When the economy reaches K, total saving is represented by point ________ and depreciation is represented by point ________.
A. e; Y B. e; e C. Y; e D. Y; Y