Suppose that the Fed decides to decrease the money supply by 0.87 percent. If the velocity of money is constant, then the quantity theory of money predicts that:
a. nominal GDP will remain unchanged.
b. the quantity of output will rise by 0.87 percent.
c. nominal GDP will fall by 0.87 percent.
d. the price level will fall by 0.87 percent.
e. real GDP will fall by 0.87 percent.
c
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Structural change influences the unemployment rate and such structural change is created by changes in
A) real GDP. B) technology. C) the minimum wage. D) population. E) the seasons.
To derive the demand curve of a product in indifference curve analysis, the:
A. Budget line is assumed to stay in a fixed position B. Money income of the consumer is assumed to be variable C. The prices of both products are assumed to be variable D. Tastes and preferences of the consumer are assumed to be fixed
Refer to the table above. If imports falls to $45,000 in the next year, ________, all other variables remaining unchanged
A) gross domestic product will fall by $5,000 B) gross domestic product will fall by $ 10,000 C) gross domestic product will increase by $5,000 D) gross domestic product will increase by $ 10,000
Professor Rush decides to quit teaching economics and opens a shoe store out at the mall. He gave up an annual income of $50,000 to open the store. A year after opening the shoe store, the total revenue for the year was $200,000
Rush's expenses were $30,000 for labor, rent was $18,000, and utilities were $1,200. He also had to purchase new shoes from manufacturers, at a cost of $60,000, which was financed by cashing in his savings of $60,000 that had been in a bank earning 8 percent per year. The normal profit from operating a shoe store in the mall is $20,000. Determine Professor Rush's total cost and economic profit.