Identify the correct statement about the aggregate supply curve
a. The aggregate supply curve is irrelevant for determining macroeconomic equilibrium.
b. The aggregate supply curve shows the various quantities of a particular good that is produced in the economy.
c. The aggregate supply curve shows an inverse relationship between price level and employment.
d. The aggregate supply curve shifts inward with an increase in consumer spending, investment, government spending, and net exports.
e. The aggregate supply curve relates total output in the economy to alternative price levels.
e
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The velocity of circulation grows at 1 percent and real GDP grows at 3 percent. If the quantity of money grows at 4 percent, the inflation rate is
A) 8 percent. B) 4 percent. C) zero. D) 2 percent. E) 10 percent.
The social cost of a good or service includes the producer's private cost and all the external costs
Indicate whether the statement is true or false
M1 includes all but which of the following?
A) savings deposits. B) currency in the hands of the public. C) transactions accounts. D) travelers checks.
As more capital per worker is added, a per worker production function generally becomes:
a. flatter because capital is subject to diminishing marginal returns. b. flatter because labor is subject to diminishing marginal returns. c. flatter because capital is subject to increasing marginal returns. d. steeper because capital is subject to diminishing marginal returns.