Suppose the money growth rate is 3 percent, velocity is constant, and price level is growing at 2 percent. What is the growth rate of real GDP?
What will be an ideal response?
1 percent
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During the Great Depression, union membership _____ due to _____
a. expanded, greater cooperation between radicals and conservatives in the labor movement. b. expanded, the passage of pro-union legislation. c. contracted, greater conflict between radicals and conservatives in the labor movement. d. contracted, people wouldn't risk losing their jobs by joining a union when unemployment was high.
Following an unexpected decline in aggregate demand, once production cutbacks start offsetting rising inventory levels:
a. the aggregate demand curve will shift to the right. b. the aggregate supply curve will shift to the left. c. the economy will return to its natural rate of unemployment. d. the short-run Phillips curve will shift to the right. e. the economy will face both higher inflation and a higher unemployment rate.
A monopolist sells a homogeneous good in several distinct submarkets, and the elasticities of demand differ in these submarkets. If the monopolist selects the rate of output to sell in each submarket by equating marginal revenue and marginal cost, then
A. it is not price discriminating, but merely price differentiating. B. customers in markets with more elastic demand will pay higher prices than customers in markets with less elastic demand. C. customers in markets with more elastic demand will pay lower prices than customers in markets with less elastic demand. D. all customers in all markets end up paying the same price.
The term "relative price" is used to refer to how the current price of a good or service compares to the price of the same item in the previous time period
Indicate whether the statement is true or false