In the basic closed-economy ISLM model, the money market can be described by the
A) money demand function.
B) money supply.
C) money market equilibrium condition.
D) all of the above.
D
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In order to spend more time with her children, a young mother decides to work less hours as her pay increases. What does her labor supply curve look like?
What will be an ideal response?
Hyperinflation refers to a(n)
A. very rapid increase in the overall price level. B. increase in both price level and output. C. very rapid decrease in the overall price level. D. decrease in unemployment which is accompanied by a rapid increase in wages.
Which of the following statements is true? a. A firm that has monopoly power is a price maker
b. A firm that has monopoly power is a price taker. c. A firm that has monopoly power earns exorbitant profits. d. A firm that has monopoly power has a perfectly elastic demand curve. e. A firm that has monopoly power has a perfectly inelastic demand curve.
When someone stops mowing his own lawn and hires a lawn service to mow it for him, what happens to GDP? (Assume that the lawn service reports its income to the IRS.)
A. It falls because hiring a lawn service reduced the amount of other goods that the person could purchase. B. It rises because GDP includes the value of the additional leisure time that the person gets by hiring someone else. C. Nothing; the same lawns are being mowed, so production has not changed. D. It rises because when the person used to mow his own lawn it was a nonmarket production, which is not counted, but the hiring of the lawn service is counted in the GDP.