If monetary neutrality holds, then an increase in the money supply
a. increases real but not nominal variables. Most economists think that monetary neutrality is a good description of the short run.
b. increases real but not nominal variables. Most economists think that monetary neutrality is a good description of the long run.
c. increases nominal but not real variables. Most economists think that monetary neutrality is a good description of the short run.
d. increases nominal but not real variables. Most economists think that monetary neutrality is a good description of the long run.
d
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Which of the following expenditures is classified as a discretionary expenditure of the U.S. federal government?
A) federal employee pensions B) student loans and grants C) Social Security D) food stamps
You have won a contest and are allowed to choose between two prizes. One option is to receive $200 today and another $200 one year from now. The second option is $100 today and an additional $325 one year from now
At what interest rate (if any) is the present value of the two prizes identical? A) 0 percent B) 5 percent C) 10 percent D) 25 percent E) none of the above
If a price floor of $23 were placed in the market in the graph shown, which area represents deadweight loss?
A. C + F
B. C + D + F
C. G
D. B + C + E + F
When the inflationary gap is finally eliminated, a long-run equilibrium is established with a ____ price level and with GDP ____ potential GDP
a. higher; equal to b. higher; greater than c. lower; equal to d. lower; greater than