Savings deposits are ________ the M1 measure of money and ________ the M2 measure of money.
A. included in; included in
B. excluded from; included in
C. excluded from; excluded from
D. included in; excluded from
Answer: B
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In the IS model, assuming that the real interest rate does not change, an increase in autonomous ________ leads to an increase in the equilibrium level of ________
A) investment; consumption B) consumption; investment C) net exports; investment D) all of the above E) none of the above
Peg's Manicure Manor did 4,000 sets of nails in 2015 and 4,500 sets of nails in 2016. The price of a set of nails was $20 in 2015 and $22 in 2016. If 2015 is the base year, Peg's contribution to real GDP in 2015 was ________ and in 2016 was ________.
A. $80,000; $88,000 B. $80,000; $90,000 C. $88,000; $90,000 D. $80,000; $99,000
Which of the following is least likely to result in inflation?
a. A drought in California that causes farm production to fall. b. The government printing money to finance deficits. c. A reduction in consumer confidence. d. Rising instability in oil-producing nations.
A firm has capacity limitations and charges $30 for its service during daily peak times. If the market demand elasticity drops from ?3 during peak times to ?5 at off-peak times, how much should the firm charge to earn the maximum profit during off-peak times?
A. $20 B. $24 C. $21 D. Not enough information to determine