Consider an economy where the growth rate of money supply is 2% and the inflation rate is 2%. If the quantity theory of money holds, the growth rate of real GDP in the economy will be:
A) 2%. B) 4%. C) 1%. D) 0%.
D
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One group of people uses New York City subways only during rush hour to travel to and from work. Another group uses them only in midday for leisure activity. If New York City wants to increase transit fares with the smallest possible reduction in revenue, for which group should it increase the fare?
a. The rush-hour group because its demand for subway service is more elastic than that of the midday group. b. The rush-hour group because its demand for subway service is less elastic than that of the midday group. c. The midday group because its demand for subway service is more elastic than that of the rush-hour group. d. The midday group because its demand for subway service is less elastic than that of the rush-hour group. e. It doesn't matter because both groups have the same elasticity of demand.
According to the textbook, if the government had taxed everyone who earned more than $1 million an income tax rate of 100 percent in 2012, the budget deficit for that year would have been completely eliminated
Indicate whether the statement is true or false
If we are to achieve the benefits of civilized life, people must be allowed to cooperate with one another by engaging in certain very specific acts at exactly the right time and place.
What will be an ideal response?
John just won the Megamillions jackpot. We can assume that his demand for all:
A. inferior goods will increase. B. normal goods will increase. C. normal goods will stay the same. D. normal goods will decrease.