A drop in velocity means that at any nominal GDP there is a desire to hold a ________ proportion of assets in money form, thus ________ shift in the LM curve
A) larger, a downward
B) larger, an upward
C) smaller, a downward
D) smaller, an upward
B
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The personal distribution of income measures which of the following?
A) the distribution of earnings by the factors of production B) proportion of income generated by the four types of expenditures on goods and services C) the distribution of income among households D) the distribution of income among nations E) how federal tax revenues are related to the type of businesses that employs the taxpayers
Suppose that each of 10,000 perfectly competitive firm in an industry produces 1,000 units of a good and earns an economic profit when the price of the good is $10. In the long run, definitely
A) each firm increases its production above 1,000 units. B) the number of firms is more than 10,000. C) consumer surplus decreases. D) producer surplus increases. E) the number of firms is less than 10,000.
Suppose a firm has the following total cost function: TC = 100 + 4q2. What is the minimum price necessary for the firm to earn profit? Below what price will the firm shut down in the short run?
What will be an ideal response?
The CPI basket is determined by
What will be an ideal response?