In the long run the primary effect of increasing the quantity of money is higher prices
a. True
b. False
Indicate whether the statement is true or false
True
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If inflation causes the absolute prices of all commodities to double, then the relative prices
a. will also double. b. will be halved. c. will be unchanged. d. may rise, fall, or remain unchanged.
Given the consumption function C = $100 billion + 0.75 ($300 billion), autonomous consumption is equal to:
a. $100 billion. b. $225 billion. c. $300 billion. d. $325 billion. e. $400 billion.
Microeconomics: a. provides an overall view of the economy and how it functions
b. explores the behavior of individual consumers and firms when confronted with scarcity. c. examines the aggregate behavior of consumers and firms when confronted with scarcity. d. is a "positive" science, whereas macroeconomics is a "normative" science.
Refer to Table 4-4. Suppose that the quantity of labor demanded decreases by 40,000 at each wage level. What are the new free market equilibrium hourly wage and the new equilibrium quantity of labor?
A) W = $9.50; Q = 380,000 B) W = $10.00; Q = 390,000 C) W = $8.00; Q = 350,000 D) W = $8.50; Q = 340,000