Assume monetary equilibrium exists; that is, the desired and actual supply of money are equal. Also assume that nominal GDP equals $960 billion and the money supply is $160 billion. From a strict monetarist view, an increase in the money supply by $12 billion will increase nominal GDP by:
A. $13 billion
B. $24 billion
C. $72 billion
D. $80 billion
C. $72 billion
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Describe the main explanations for the downward rigidity of wages in the modern macroeconomy. Evaluate their probability of being correct and important.
What will be an ideal response?
The concept of a "political business cycle" suggests that a possible cause of macroeconomic instability is due to the use of fiscal policy for political purposes.
Answer the following statement true (T) or false (F)
Why don’t economists use the same cost data as accountants use?
Please provide the best answer for the statement.
Total revenue will increase if price
A. rises and demand is elastic. B. rises and demand is unit elastic. C. falls and demand is inelastic. D. falls and demand is elastic.