If velocity remains constant, which of the following examples would cause the price level to be stable?
a. Money supply increases by 7 percent; real GDP increases by 8 percent.
b. Money supply increases by 8 percent; real GDP increases by 11 percent.
c. Money supply increases by 5 percent; real GDP increases by 3 percent.
d. Money supply increases by 12 percent; real GDP increases by 12 percent.
d. Money supply increases by 12 percent; real GDP increases by 12 percent.
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Refer to Table 3-1. The table above shows the demand schedules for Kona coffee of two individuals (Luke and Ravi) and the rest of the market. At a price of $6, the quantity demanded in the market would be
A) 36 lbs. B) 68 lbs. C) 89 lbs. D) 123 lbs.
The Natural rate of unemployment equals
a. The sum of the frictional and structural unemployment rates. b. The sum of the frictional and cyclical unemployment rates. c. The sum of the structural and cyclical unemployment rates. d. None of the above.
The unemployment rate was increasing from 6 percent to 7 percent could be interpreted as an increase in the natural rate of
a. inflation. b. unemployment. c. economic growth. d. aggregate supply.
Determine the deposit/refund amount that achieves an efficient solution.
State officials are establishing a deposit/refund system for batteries. Marginal costs and benefits have been estimated to be: MPC = 5 + 0.5Q MPB = MSB = 20 – 0.5Q MSC = 5 + 0.7Q, whereQ is in millions, and the marginal cost and benefit values are in dollars per battery.