What is the "medium of exchange" function of money?
a. Money provides a unit for measurement of different goods and services.
b. Money has the ability to hold value over time.
c. Materials used to manufacture money are of medium grade or quality, so that people will not hoard money for its commodity value
d. Money is widely accepted in exchange for goods and services
d
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In a supply-demand diagram, the law of supply is illustrated by
a. shifting the supply curve to the right as suppliers expand production and to the left as they contract production. b. drawing the supply curve so that it slopes upward. c. showing how the equilibrium point changes as the supply curve shifts. d. drawing a vertical line at the quantity that producers choose to supply.
When the price of bananas rises 2 percent, the quantity demanded of peanut butter falls 4 percent
a. What is the cross elasticity of demand between these two goods? b. How are these goods related? c. If the price of bananas rises, how will that affect the demand curve for peanut butter?
When the economy responds to a supply shock, there is ________ in the short run and ________ in the long run between inflation and unemployment
A) an inverse relationship; no trade-off B) no trade-off; an inverse relationship C) an inverse relationship; an inverse relationship D) no trade-off; no trade-off
According to traditional Keynesian analysis, which has a greater impact on aggregate demand, changing taxes or changing government expenditures? Why?