When economists state that money is neutral in the long run, they mean that in the long run,
A) fluctuations in the money supply are equally likely to lead to recessions as to expansions.
B) changes in the money supply have the same impact on the rich as they do on the poor.
C) the level of output is independent of the nominal money supply.
D) the price level is independent of the nominal money supply.
C
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When real GDP is greater than potential GDP, there is ________ which leads the inflation rate to ________
A) a recessionary gap; rise B) a recessionary gap; remain stable C) an inflationary gap; rise D) a recessionary gap; fall E) an inflationary gap; fall
As interest rates decrease, the:
A. Cost of current relative to future consumption increases B. Cost of current relative to future consumption decreases C. Cost of current consumption relative to future consumption remains the same D. Desire of many individuals to save increases
If the economy is producing at point B, the opportunity cost of gaining 12 units of consumer goods is _______ units of capital goods.
A demand curve is also a willingness-and-ability-to-pay curve
Indicate whether the statement is true or false