The classical dichotomy refers to the idea that the supply of money
a. is irrelevant for understanding the determinants of nominal and real variables.
b. determines nominal variables, but not real variables.
c. determines real variables, but not nominal variables.
d. is a determinant of both real and nominal variables.
b
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A consumer's optimal choice is affected by income, prices of goods, and preferences
a. True b. False Indicate whether the statement is true or false
Assume the Marshall-Lerner condition holds. Which of the following will cause an increase in net exports?
A) an increase in government spending B) an increase in investment C) a reduction in foreign output D) a reduction in the real exchange rate E) all of the above
Answer the following statement(s) true (T) or false (F)
1. A competitive firm's short-run demand for labor will rise when the price of its product rises. 2. Increased use of machinery always hurts workers by lowering the demand for their labor. 3. As the wage rate rises, the marginal revenue product of labor increases. 4. f labor and capital are complements in production, additions to capital will increase both the total and marginal products of labor. 5. When two factors are substitutes in production, an increase in the employment of one increases the marginal product of the other.
Policies that preclude the deliberate creation of monopoly and undesirable practices are called
a. antitrust policies. b. anti-monopoly policies. c. anti-competitive policies. d. socialism.