The precautionary demand for money
a. varies inversely with the income level
b. varies inversely with the price level
c. is used as insurance against unexpected needs
d. states that nominal income must exceed real income
e. is a classical concept in monetary theory
C
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Planned economies
a. can increase production rapidly but are likely to be inefficient b. can produce efficiently but can't guarantee consumers' needs are met c. can produce efficiently, but only at low levels of output d. can provide for all society's needs, but are likely to be inefficient e. none of the above
Suppose the upward sloping labor supply curve shifts leftward in a labor market with a single employer (monopsony). What happens to the equilibrium wage and level of employment in the market?
A) Wage and level of employment increase. B) Wage increases and level of employment declines. C) Wage decreases and level of employment increases. D) Wage and level of employment decline.
Real GDP is:
(a) GDP valued at current market prices. (b) GDP valued at base year prices. (c) GDP valued at current input prices. (d) The nominal value of GDP.
Financial institutions reward savers with the following, except
A. Interest B. Wages C. Dividends D. Capital gains