When all variables start out at their long-run equilibrium levels, the most important determinant of long-run swings in nominal exchange rates is
A) a shift in relative money supply levels.
B) a shift in relative money supply growth rates.
C) a change in relative output demand.
D) a change in relative output supply.
E) a change in relative inflation rates.
E
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Which of the following changes would not result in a shift in the demand curve for milk?
A. A change in the income of buyers of milk B. A change in the price of milk C. A change in the population D. A medical report that milk consumption increases cholesterol.
The Rule of 70, as applied to real GDP growth, can be used to find the
A) real GDP growth rate necessary to double growth. B) growth rate of real GDP. C) number of years it takes for the level of real GDP to double. D) population growth rate necessary to double the GDP growth rate. E) number of years it takes for the growth rate of real GDP to double.
The form of economic organization in which productive resources are privately owned by individuals, and those individuals independently decide what to produce is called
A) communism. B) capitalism. C) socialism. D) utilitarianism.
Last year you purchased 20 CDs at $12 a piece, 10 shirts at $15 each, and 5 sweaters at $30 each (total spending equals $540). This year you buy 18 CDs at $15 each, 10 shirts at $16 each, and 6 sweaters at $36 each (total spending equals $640)
If last year's index was 100, this year's index A) is 119.6. B) is 118.5. C) is 83.6. D) is 30.