"A drop in the money supply lowered output in the short run, but left output unaffected in the long run." This statement implies that the price level __________ in the long run, causing the interest rate to __________
A) rose; rise
B) rose; fall
C) fell; rise
D) fell; fall
D
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A competitive firm will exit an industry in the long run when the market price falls below its
a. marginal revenue. b. marginal cost. c. average cost. d. average variable cost.
If the price elasticity of supply of corn is 3.12, then is the supply of corn elastic or inelastic?
What will be an ideal response?
GLS involves
A) writing the model in differences and estimating it by OLS, using HAC standard errors. B) truncating the sample at both ends of the period, then estimating by OLS using HAC standard errors. C) checking the AIC rather than the BIC in choosing the maximum lag-length of the regressors. D) transforming the regression model so that the errors are homoskedastic and serially uncorrelated, and then estimating the transformed regression model by OLS.
Which of the following statements about agriculture in the U.S. is correct?
a. From the 1950s to today, agricultural output has approximately doubled. b. Because technological improvements increase the supply of a product for which demand is inelastic, an individual farmer would be better off not adopting the new technology. c. Increasing the supply of agricultural products typically benefits consumers but harms farmers. d. Technological improvements typically increase both supply and revenue for individual farmers.