Over the past decade technological improvements that have lowered the cost of producing an automobile have increased
A) both the supply and the demand for automobiles.
B) the supply but not the demand for automobiles.
C) the demand but not the supply of automobiles.
D) neither the supply nor the demand for automobiles.
B
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Real business cycle models argue that fluctuations in real GDP are caused by unanticipated changes in the money supply
Indicate whether the statement is true or false
If nominal GDP for 2009 is $6400 billion and real GDP for 2010 is $6720 billion (in 2009 dollars), then the growth rate of real GDP is
A) 0%. B) 0.5%. C) 5%. D) 50%.
A perfectly elastic demand curve is a vertical line
Indicate whether the statement is true or false
One of the main advantages of commodity money is:
a. It never loses value because it is valued in terms of fiat money. b. Actually, there are no real advantages of commodity money. c. It is backed 100% by the central bank guarantees. d. It tends to fall in value as inflation rises and to rise as inflation falls. e. It cannot be easily duplicated and therefore manipulated for political advantage.