An increase in autonomous spending is sure to reduce the real money supply when
A) the economy is in the liquidity trap.
B) the IS curve is vertical.
C) the economy is at full employment.
D) velocity is constant.
C
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If the elasticity of supply of a good is zero, then its
A) supply curve is vertical. B) supply curve is horizontal. C) demand curve must be vertical. D) supply curve is positively sloped.
A Consumer Price Index (CPI) adjustment overcompensates for inflation because it ignores
A) the income effect when relative prices change. B) the substitution effect when relative prices change. C) that some goods are inferior. D) that the substitution effect may offset the income effect.
The determinants of labor supply include:
A. supply of other factors and output prices. B. other opportunities and technology. C. culture and technology. D. culture and other opportunities.
if the entire output of a market is produced by a single seller, the firm:
A.) Is a monopoly. B.) Is competitive. C.) Is an oligopolist. D.) Faces a perfectly vertical demand curve.