The American Civil War lasted from the spring of 1861 to the spring of 1865. During the war the Confederate government issued substantial amounts of fiat paper currency
What do you think happened to the price level (measured in Confederate dollars) in the Confederate states during the final months of the war?
During the final months of the war, the imminent demise of the Confederate government greatly reduced the willingness of people to hold Confederate currency. The usefulness of Confederate currency as a store of value and as a standard of deferred payment declined sharply. Those attempting to buy goods and services with the currency had to offer increasing amounts of it in order to find anyone willing to accept it. Or, put another way, the price level rose dramatically, measured in Confederate dollars.
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Refer to Table 11.1. If the marginal propensity to consume decreases to 0.05 (MPC = 0.05), what is the new equilibrium level of output?
A) 2,366.67 B) 3,166.67 C) 3,550.00 D) 4,750.00
Which of the following is TRUE regarding perfect competition? I. The firms are price takers. II. Marginal revenue equals the price of the product. III. Established firms have no advantage over new firms
A) I and II B) II and III C) I, II and III D) I only
In 2017 inflation adjusted U.S. poverty threshold was
A. An annual income of less than $10,000 for a family of two. B. The cost of food and shelter but not other necessities for an individual. C. An annual income of less than $25,000 for a family of four. D. The dollar measure of output produced by an individual.
A decrease in the demand for incandescent light bulbs due to changes in consumer tastes, accompanied by a decrease in the supply of incandescent light bulbs as a result of government restrictions, will result in
A) a decrease in the equilibrium quantity of incandescent light bulbs and no change in the equilibrium price. B) a decrease in the equilibrium price of incandescent light bulbs and no change in the equilibrium quantity. C) a decrease in the equilibrium price of incandescent light bulbs; the equilibrium quantity may increase or decrease. D) a decrease in the equilibrium quantity of incandescent light bulbs; the equilibrium price may increase or decrease.