If both nominal and real GDP are increasing when the money supply is constant, than we can conclude that
A) velocity has increased. B) interest rate has fallen.
C) velocity has decreased. D) interest rate has increased.
A
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Licensing laws
a. are illegal in most industries b. serve to increase wage rates in some industries c. lead to higher employment levels in some industries d. reduce the quality of labor in a particular market e. are rarely effective at increasing wage rates
George and Jerry are competitors in a local market. Each is trying to decide if it is better to advertise on TV, on radio, or not at all. If they both advertise on TV, each will earn a profit of $3,000 . If they both advertise on radio, each will earn a profit of $5,000 . If neither advertises at all, each will earn a profit of $10,000 . If one advertises on TV and the other advertises on radio,
then the one advertising on TV will earn $4,000 and the other will earn $2,000 . If one advertises on TV and the other does not advertise, then the one advertising on TV will earn $8,000 and the other will earn $5,000 . If one advertises on radio and the other does not advertise, then the one advertising on radio will earn $9,000 and the other will earn $6,000 . If both follow their dominant strategy, then George will a. advertise on TV and earn $3,000. b. advertise on radio and earn $5,000. c. advertise on TV and earn $8,000. d. not advertise and earn $10,000.
In contrast to the functional finance view, Classical sound finance macroeconomics assumes that individuals:
A. do not adjust their spending to account for future tax payments. B. adjust their spending to account for future incomes. C. do not adjust their spending to account for future incomes. D. adjust their spending to account for future tax payments.
The smallest size at which long-run average cost is at its lowest level is called
A. the minimum efficient scale. B. economies of scale. C. the maximum efficient scale. D. diseconomies of scale.