The idea that an improvement in technology causes an increase in population but causes no increase in the average standard of living is attributed to
A) Adam Smith.
B) Thomas Malthus.
C) Robert Solow.
D) Milton Friedman.
B
You might also like to view...
Mr. Garrison has recently obtained a bank card from South Park National Bank. Excited about the concept of using a little plastic card to get money from a machine, he quickly runs down to the nearest ATM and withdraws $500. This action has
A) reduced the bank's required reserves by $25 assuming the reserve ratio is 5 percent. B) reduced the money supply by $500. C) increased the money supply by $500. D) not changed the money supply.
If one of the agents in an Edgeworth Box has monopoly power and maximizes profit as the sole seller, then the economic outcome is:
A) inefficient because the monopoly has no incentive to be technically efficient. B) inefficient because the monopoly produces less than the optimal amount of output. C) Both A and B are correct. D) none of the above
If the nominal GDP is $500 billion and the money supply is $100 billion, the velocity of money is:
a. 500. b. 5.00 c. 2.50. d. 0.40.
Bank reserves that exceed the reserve requirements set by the central bank are called:
A. required reserves. B. excess reserves. C. legal reserves. D. total reserves.