We devote a larger portion of our GDP to transportation than most developed countries because of
A. the high price of gasoline.
B. inadequate rail transportation.
C. size of the country.
D. lack of roads and parking lots. Productivity and real GDP are inversely related.
B. inadequate rail transportation.
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Expansions of aggregate demand cause the economy to move along what is essentially a vertical aggregate supply curve when
A) wage increases catch up to inflation. B) higher prices can reduce interest rates no further. C) money supply growth rises to equal the rate of aggregate demand expansion. D) from a recession level of output, full employment is reached.
Monetarists believe that:
a. velocity is constant. b. velocity is highly predictable. c. there are three motives for demanding money. d. changes in the money supply cause changes in velocity. e. a change in the money supply can affect real GDP.
The foreign exchange rate can be influenced by the Federal Reserve
a. True b. False
Given a constant demand, a rise in prices ______.
a. decreases consumer surplus b. increases consumer surplus c. locks consumer surplus into place d. has little effect on consumer surplus