All else the same, when real GDP increases, the
A) supply of money decreases.
B) demand for money increases.
C) supply of money increases.
D) demand for money decreases.
E) supply of money does not change, and the demand for money does not change.
B
You might also like to view...
Consider the budget line in the above figure. If the consumer's income is $240, then the price of a movie is
A) $24 per movie. B) $12 per movie. C) $10 per movie. D) More information is needed to determine the price of a movie.
Assume that business investment spending rises, and the increase is funded by greater borrowing in the capital markets. If the nation has low mobility international capital markets and a fixed exchange rate system, what happens to the GDP Price Index and reserves account in the context of the Three-Sector-Model? a. The GDP Price Index rises and reserves account becomes more positive (or less
negative). b. The GDP Price Index falls and reserves account remains the same. c. The GDP Price Index and reserves account remain the same. d. The GDP Price Index rises and reserves account remains the same. e. There is not enough information to determine what happens to these two macroeconomic variables.
Implicit costs are
a. Regarded as costs by accountants, but not economists. b. Payments that a firm makes to other firms or individuals who supply resources to it. c. Opportunity costs such as the value of leisure time, or the highest and best use of the business's assets. d. Costs that vary proportionally with output.
What is the most common measure of productivity? How is it calculated?
What will be an ideal response?