Professor Tabarrok uses which rewritten version of the quantity theory of money to explain the aggregate demand curve?
A. The growth rate of M + the growth rate of V = inflation + real growth
B. The growth rate of M + real growth = the growth rate of V + inflation
C. The growth rate of M + the growth rate of V + inflation + real growth = 100%
D. The growth rate of M ? inflation = real growth - the growth rate of V
Ans: D. The growth rate of M ? inflation = real growth - the growth rate of V
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Which of the following is not a reason why China is unlikely to maintain high enough rates of productivity growth to catch up with the standard of living in the United States?
A) Much of China's growth is likely due to the transition from a centrally-planned economy to a market economy. B) Because of the low birth rate in China, the labor force will soon decline. C) The United States invests more in research and development than does China. D) The Chinese migration of rural workers to more productive urban jobs.
A movement along a demand curve may be caused by a change in
A) the non-price determinants of demand. B) the change in consumer expectations. C) the change in demand. D) the change in supply.
Which of the following was true of the United States before 1970? a. The government was not responsible for promoting employment, output, and purchasing power. b. Most macroeconomic instability was caused by changes in international oil prices
c. Most macroeconomic instability was caused by shifts of aggregate demand. d. Most macroeconomic instability was caused by the depreciation of the dollar. e. The government was responsible for using monetary policy to correct a depression.
Which of the following statements best describes an effect of tax cuts?
a. In a recession, when the intersection of the AD and AS curves is far below the full-employment level, tax cuts can do not make sense as a way of shifting AD to the left. b. In a recession, when the intersection of the AD and AS curves is far below the full-employment level, tax cuts do not make sense as a way of shifting AD to the right. c. In a recession, when the intersection of the AD and AS curves is far below the full-employment level, tax cuts can make sense as a way of shifting AD to the left. d. In a recession, when the intersection of the AD and AS curves is far below the full-employment level, tax cuts can make sense as a way of shifting AD to the right.