In the monetarist version of the AD-AS framework, a decrease in velocity produces a __________ shift of the __________ curve
A) rightward; AD
B) rightward; SRAS
C) leftward; AD
D) leftward; SRAS
C
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When would sunk costs be irrelevant for current decision making?
a. when the sunk costs are computed using accounting methods b. when the sunk costs are greater than variable costs c. when the sunk costs have been incurred only a short time ago d. Sunk cost are always irrelevant when making current decisions.
When the money supply rises by 10%, in the short run, output ________ and the price level ________
A) rises; is unchanged B) declines; falls C) is unchanged; falls D) declines; is unchanged
Firms are more likely to devote resources to research and development when
A) the country is in recession. B) they expect to earn rewards from successful research and development. C) it is easy to copy new techniques of other firms. D) the country has been experiencing slow economic growth in order to spur economic growth.
The three important functions of money are _____
a. medium of exchange, facilitation of trade, and unit of account b. unit of account, facilitation of trade, and store of value c. store of value, facilitation of trade, and double coincidence of wants d. facilitation of trade, medium of exchange, and unit of account e. medium of exchange, unit of account, and store of value