In words, the equation of exchange says that
A) the total amount spent on final output equals the amount received for final output.
B) the amount of money in circulation equals the velocity of the price level.
C) changes in the money supply will have no impact on the amount spent on final output.
D) when velocity equals 1, nominal GDP equals the price level.
A
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The graph shown demonstrates a tax on sellers. How many fewer units are being sold due to the imposition of a tax on this market?
A. 15
B. 16
C. 31
D. 37
If large numbers of young Americans thought the life of a cowhand was great (despite the hardships), we would expect
a. an increase in the wages of cowhands. b. a decrease in the wages of cowhands because demand would be reduced. c. no impact on wages, which are determined by supply and demand, not preferences. d. a decrease in the wages of cowhands because supply would be enlarged.
Monopolistically competitive firms offer consumers more variety than perfectly competitive firms.
Answer the following statement true (T) or false (F)
An alternative to ________ is to rely on natural experiments to mimic the controlled experiment.
A. mirror experiments B. manipulated experiments C. predetermined experiments D. random experiments