If real GDP grows by 3 percent, the velocity of circulation does not change, and the quantity of money grows by 3 percent, then in the long run the inflation rate is
A) 0 percent. B) 6 percent. C) -3 percent. D) -6 percent. E) 3 percent.
A
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What is the opportunity cost of moving from point B to point A?
The coordinates of point A are 30 units of X and 70 units of Y. The coordinates of point B are 28 units of X and 76 units of Y. With X on the horizontal axis and Y on the vertical axis, the slope of the line between points A and B is
A) + 3.00 B) + 0.67 C) + 0.33 D) - 3.00 E) - 0.33
With an MPS of .2, the MPC will be:
a. .8 b. .3 c. 1.2 d. 5
Refer to Table 2-1. Assume Dina's Diner only produces sliders and hot wings. A combination of 20 sliders and 60 hot wings would appear
A) along Dina's production possibilities frontier. B) inside Dina's production possibilities frontier. C) outside Dina's production possibilities frontier. D) at the vertical intercept of Dina's production possibilities frontier.