According to the classical model, which of the following would double if the quantity of money doubled?
a. prices but not nominal income
b. nominal income but not prices
c. both prices and nominal income
d. neither prices nor nominal income
c
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In the Keynesian model, firms are best characterized as
A) perfectly competitive. B) irrational. C) price takers. D) monopolistically competitive.
Ceteris paribus, if the price of jet fuel fell, what effect would it have on the market for air travel?
a. an increase in equilibrium price and an increase in equilibrium quantity. b. an increase in equilibrium price and a decrease in equilibrium quantity. c. a decrease in equilibrium price and an increase in equilibrium quantity. d. a decrease in equilibrium price and a decrease in equilibrium quantity.
New classical economics assumes that government has direct control over the equilibrium level of GDP and indirect control over the money supply
a. True b. False Indicate whether the statement is true or false
At any given quantity, the cost of the marginal seller is the height of the __________
Fill in the blank(s) with correct word