A change in the price level changes the amount of nominal money people demand
Indicate whether the statement is true or false
TRUE
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The "deadweight loss" from a monopoly refers to
a. the portion of a monopolist's profits that are above the competitive profit level. b. the increase in price due to the monopolization of a market. c. the inefficient use of factors of production by a monopoly. d. the loss of consumer surplus due to the monopolization of a market that is not transferred to another economic actor.
The price tag on a golf ball in 1975 read $0.20, and the price tag on a golf ball in 2005 read $2.00 . The CPI in 1975 was 52.3, and the CPI in 2005 was 191.3 . In 1975 dollars, a 1975 golf ball cost $0.20 and a 2005 golf ball cost
a. $0.55, so golf balls were cheaper in 1975. b. $0.55, so golf balls were cheaper in 2005. c. $7.32, so golf balls were cheaper in 1975. d. $7.32, so golf balls were cheaper in 2005.
When the interest rate falls, the:
a. Total amount of money demanded decreases b. Total amount of money demanded increases c. Asset demand for money decreases d. Transactions demand for money increases
when the AD and SAS curves intersect at a level of real GDP which exceeds potential GDP, which of the following will occur?
What will be an ideal response?