If a non-renewable resource is scarce, has constant marginal cost of production and is sold in a competitive market,
A) its price will increase over time.
B) its price will exceed marginal cost.
C) its price will increase by the rate of interest.
D) All of the above.
D
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An inflationary gap will exist when the full employment level of GDP is
A. equal to equilibrium GDP. B. greater than equilibrium GDP. C. less than equilibrium GDP. D. greater than disposable income.
Refer to Figure 1A.2. The slope of the curve
A) is positive. B) is negative. C) is zero. D) changes along the curve.
In the Baumol-Tobin analysis of the demand for money, either an increase in ________ or an increase in ________ increases money demand
A) income; interest rates B) brokerage fees; interest rates C) interest rates; the price level D) brokerage fees; income
A vertical aggregate supply schedule implies that
a. real wages cannot impact output. b. unemployment cannot impact output. c. aggregate demand is horizontal. d. the price level does not impact output.