Assuming that there is an excess supply of money in the classical model, then
a. a matching excess demand for commodities will lower the aggregate price level.
b. a corresponding excess demand for commodities will drive the aggregate price level up.
c. an equal excess demand for commodities will not affect the price level.
d. None of the above
B
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Business inventories increase when firms produce ________.
A. less than they sell, and the inventory increase is subtracted from GDP B. more than they sell, and the inventory increase is subtracted from GDP C. more than they sell, and the inventory increase is added to GDP D. less than they sell, and the inventory increase is added to GDP
Charles Beard (1935) argued that the economic self-interest of businessmen, merchants, manufacturers, bankers and investors led them to convene at the Constitutional Convention in the late 1770s
They believed that creating a new, or at least modified, system of laws would help them advance the projects in which they were interested at minimal cost. Indicate whether the statement is true or false
Exhibit 3 Demand and cost curves for GeneTech, a monopolist with a patented vaccine
Consider Exhibit 9-3. Suppose GeneTech's patent expires and the market for the vaccine becomes perfectly competitive. Which of the following price and quantity combinations would be most likely?
A. $45 per dose and 100 doses per hour B. $40 per dose and 200 doses per hour C. $35 per dose and 300 doses per hour D. $28 per dose and 450 doses per hour
If the marginal product of labor is greater than the average product of labor, then the
A. marginal product must be increasing. B. marginal product must be decreasing. C. average product must be increasing. D. average product must be decreasing.