Classical economists believe that
a. velocity varies directly with the money supply
b. changes in the money supply affect real GDP
c. the quantity of money explains prices
d. the money supply affects velocity
e. there are three motives involved in the demand for money
C
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Which of the following is true under monopoly?
a. Price is equal to marginal revenue. b. Price is equal to marginal cost. c. Price is less than marginal revenue. d. Price is less than marginal cost. e. Price is greater than marginal revenue.
Explain how productivity growth has led to labor market realignment in the United States.
What will be an ideal response?
The figure below represents the U.S. market for steel imports from South Korea. The South Korean government provides an export subsidy of $25 per ton, and South Korean firms use the subsidy to reduce their export price to the United States to $375 per ton.
The change in national welfare in the United States when the South Korean government provides an export subsidy of $25 per ton is
A. + $375 million. B. + $4.125 billion. C. -$4.5 billion. D. - $3.75 billion.
The equilibrium GDP (=Y) in the economy is:
Answer the question on the basis of the following information for a private open economy. The letters Y, C, I g , X, and M stand for GDP, consumption, gross investment, exports, and imports respectively. Figures are in billions of dollars.
A. $200.
B. $245.
C. $320.
D. $350.