In an economy in which velocity is constant and the same level of real output is produced year after year, a slow increase in the money supply would result in a:
a. constant price level
b. slowly increasing price level.
c. rapidly increasing price level.
d. slowly increasing real GDP.
e. rapidly increasing real GDP.
b
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If output per worker in a steady state is $30,000, depreciation is 13%, the population growth rate is two percent, and the saving rate is 20%, what is the steady state capital-labor ratio?
A) $10,500 B) $85,714 C) $22,500 D) $40,000
With an increase in income, the consumer will maximize utility on a new indifference curve that represents a higher level of utility
a. True b. False Indicate whether the statement is true or false
Temporary Assistance to Needy Families:
A. is more redistributive in nature than social insurance. B. is a conditional cash transfer program. C. is provided long term to help people in chronic poverty. D. is an "unconditional" cash-transfer program
The overriding factor in analyzing long-run changes in the exchange rate is:
a. the exchange rate in the period t- 1. b. how a permanent change in the supply of money is transmitted to prices and interest rates. c. the reaction of traders as they conduct arbitrage and speculation. d. the notion that there is no long run, only a series of short-run measurements.