Refer to Exhibit 14-1. What sequence of points shows the short- and long-run consequences of a fall in velocity under monetarist assumptions?
a. B-A
b. A-E-B
c. A-D-B
d. B-D-A
d. B-D-A
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In the above figure, if we start at AD1 and SRAS1, and the money supply increases unexpectedly, what would be the short-run equilibrium even with rational expectations?
A) P1 B) E2 C) E3 D) E1
Holding the price of a firm's output constant, if the marginal product of labor increases
A) the marginal products of other inputs also increase. B) the marginal revenue product of labor also increases. C) the marginal revenue product of labor may increase or decrease. D) the marginal revenue product of labor decreases.
If marginal cost is less than marginal revenue, a firm should
a. expand output. b. contract output. c. maintain steady output. d. shut down.
The Social Security tax is considered to be a
A) regressive tax. B) progressive tax. C) proportional tax. D) marginal tax.