A conclusion of the classical macroeconomic model is that
A. the average price level is determined by the costs of production.
B. the average price level is determined strictly by the money supply.
C. changes in interest rates cause changes in the velocity of money.
D. sustained unemployment is unavoidable in a market economy.
B. the average price level is determined strictly by the money supply.
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Refer to Figure 9-2. Without the tariff in place, the United States consumes
A) 9 million pounds of rice. B) 15 million pounds of rice. C) 31 million pounds of rice. D) 42 million pounds of rice.
For a particular good, a 3 percent increase in price causes a 10 percent decrease in quantity demanded. Which of the following statements is most likely applicable to this good?
a. The relevant time horizon is short. b. The good is a necessity. c. The market for the good is broadly defined. d. There are many close substitutes for this good.
A person who practices poisonous snake charming and does not reveal this to her health insurance company before purchasing insurance is an example of
A) moral hazard. B) adverse selection. C) signaling. D) screening.
The market-day supply is drawn as a vertical line at a particular level of production because
a. output can easily be adjusted b. chronic excess supply is permanent c. output can completely adjust to price changes d. output can partially adjust to price changes e. output cannot be changed during the market day