According to the flexible price framework ________
A) an increase in inflation raises real savings
B) an increase in the money supply raises real output
C) an increase in inflation lowers real investment
D) all of the above
E) none of the above
E
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New England's imports came primarily from
a. the United Kingdom. b. continental Europe. c. the West Indies. d. Africa.
If nations begin to expand their specialization in production for the purpose of trade, a. consumer surplus will increase, but not total output
b. total world output will increase, and consumer surplus will increase as well. c. total world output will increase, but consumer surplus will not increase. d. neither total output nor consumer surplus will change.
Refer to the graph shown. Suppose the market price is $4. At this price, a perfectly competitive firm should:
A. shut down in the short run but continue production in the long run. B. continue to produce in the short run but shut down in the long run. C. continue to produce in both the short run and the long run. D. shut down immediately.
Real income for a given year would be less than nominal income in that year if:
A. the consumer price index was less than 100 in that year. B. nominal income in that year was greater than nominal income in the previous year. C. nominal income in that year was less than nominal income in the previous year. D. the consumer price index was greater than 100 in that year.