If resource prices rise and the average total cost of producing a product increases as the firms in an industry expand output in response to an increase in demand, the long-run market supply curve for the product will
a. be perfectly elastic (a horizontal line).
b. be perfectly inelastic (a vertical line).
c. slope upward to the right.
d. be more inelastic than the short-run supply curve for the product.
C
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National accounts measure ________
A) the labor force participation rate in a country B) the total amount of capital goods available in a country C) the level of aggregate economic activity in a country D) the total money supply in a country
The real value of money ________ as the price level falls
A) decreases B) remains the same C) increases D) none of the above
Evidence on the existence of relative PPP shows that:
A) the evidence for relative PPP is scanty and theory is large discredited B) the evidence for relative PPP is hit or miss, and so one should exercise cations in using relative PP to predict changes in exchange rates C) relative PPP is an approximate guide to predicting the relationship between changes in inflation and exchange rates over long periods such as decades d) relative ppp holds nearly perfectly in the short and long run, are used with great accuracy to make predictions
According to John Maynard Keynes people hold money for each of these reasons except the _____ motive.
A. precautionary B. price C. speculative D. transactions