In which case is velocity the highest?
a. the price level equals 4, the money supply equals 5,000 . and output equals 20,000.
b. the price level equals 4, the money supply equals 20,000 and output equals 5,000.
c. the price level equals 2, the money supply equals 5,000 . and output equals 20,000.
d. the price level equals 2, the money supply equals 20,000 and output equals 5,000.
a
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Suppose an economy has some inflation. Then, after a base year, the value of real GDP will
A) be less than nominal GDP. B) not be different from nominal GDP. C) be greater than nominal GDP. D) will be approximately half the value of nominal GDP.
Refer to Table 7-2. Select the statement that accurately interprets the data in the table
A) Madison has an absolute advantage in making empanadas and tacos. B) Austin has an absolute advantage in making empanadas and tacos. C) Madison has an absolute advantage in making empanadas and Austin has an absolute advantage in making tacos. D) Madison has an absolute advantage in making tacos and Austin has an absolute advantage in making empanadas.
All of the following are sources of comparative advantage except
A) technology. B) climate and natural resources. C) a strong foreign currency exchange rate. D) relative abundance of labor and capital.
Refer to Figure 12-6. If Jason maximizes his profit he will produce the output rate indicated by point ________ and his average profit will equal ________
A) a; $3 B) b; $3 minus ATC at point b C) d; $3 minus ATC at point d D) e; $3 minus ATC at point e