According to the classical dichotomy, when the money supply doubles which of the following doubles?
a. the price level and nominal GDP
b. the price level and real GDP
c. only real GDP
d. only the price level
a
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When the Federal Reserve wishes to, in the short run, decrease inflation, it
A. will increase the money supply by buying bonds. B. will decrease the money supply by selling bonds. C. will increase the money supply by selling bonds. D. has no policy options that will accomplish this.
How has economist Robert Fogel explained that economic growth is connected to life expectancy? Based on this connection, in what country would you expect to have a longer life expectancy, the United States or India? Explain
What will be an ideal response?
_____ occurs when unobservable qualities are valued incorrectly because of a lack of information
a. Moral hazard b. Adverse selection c. Conspicuous consumption d. Marginal selection e. Statistical discrimination
Consider a Stackelberg duopoly with the following inverse demand function: P = 100 ? 2Q1 ? 2Q2. The firms' marginal costs are identical and are given by MCi(Qi) = ciQi. Based on this information, the Stackelberg leader's marginal revenue function is:
A. MR(QF) = 100 ? QF - 0.5cF. B. MR(QL) = 50 ? 2QL - 0.5cF. C. MR(QL) = 50 ? 2QL - 0.5cL. D. MR(QF) = 100 ? 2QF - 0.5cF.