An increase in the money supply causes output to rise in the long run
a. True
b. False
Indicate whether the statement is true or false
False
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Assume that the inflation rate in an economy is measured on the vertical axis and the annualized growth rate of money supply minus the annualized growth rate of real GDP is measured on the horizontal axis on a graph
If a curve is plotted to establish the relationship between both variables, the curve is likely to be: A) vertical. B) upward sloping. C) horizontal. D) downward sloping.
The U.S. employment-to-population ratio peaked in 2000 and in 2012 fell to 58 percent, a level not seen since the early 1980s. This fall in the employment-to-population ratio ________ the equilibrium quantity of labor and ________ potential GDP
A) increases; increases B) increases; decreases C) decreases; increases D) decreases; decreases
If the demand for a good increases by more than the supply of the good increases, then the good's equilibrium price will __________ and its equilibrium quantity will __________
A) rise; fall B) rise; rise C) fall; fall D) fall; rise
Federal transfers are expected to grow significantly in the coming decades, due especially to increases in ________
A) federal government consumption B) federal deficits C) Medicare and Medicaid D) Social Security payments