An increase in the price level leads to ________ in the demand for money, and an increase in real GDP leads to ________ in the demand for money
A) no change; an increase
B) a decrease; a decrease
C) an increase; an increase
D) a decrease; an increase
E) an increase; a decrease
C
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The introduction of money to an economy results in:
A) higher incomes B) higher productivity C) increased specialization D) a more efficient barter system
The above figure depicts a short-run production function for Albert's Pretzels. The marginal productivity of labor
A) rises then falls as the amount of capital increases. B) falls then rises as the amount of labor increases. C) is greater than or equal to the average productivity of labor for all amounts of labor. D) is less than or equal to the average productivity of labor for all amounts of labor.
Markets are primarily responsible for the rapid rise in productivity during the 20th century.
Answer the following statement true (T) or false (F)
To eliminate an AD shortfall of $100 billion when the economy has an MPC of 0.50, the government should increase spending by
A. $50 billion. B. $500 billion. C. $100 billion. D. $200 billion.