What two key assumptions does the quantity theory make concerning variables in the equation of exchange?
That V is fixed and that Y is fixed.
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Which of the following will cause the price of beer to rise?
A) A shift to the right in the demand curve for beer B) A shift to the left in the supply curve of beer C) both A and B D) none of the above
The natural rate of unemployment is:
What will be an ideal response?
Define “earmarks” and give an example
Please provide the best answer for the statement.
The existence of menu costs are often used to explain why
A) fiscal and monetary policies should be relatively effective. B) the price of services, like those provided by restaurants and barbers, rise at a faster rate than the price of goods, like automobiles and clothing. C) food prices tend to rise disproportionately rapidly in the consumer price index. D) price and wage adjustments will be relatively rapid. E) people prefer to look backward, instead of forward, when anticipating the future.