Assume the following: M = $500; V = 10; and Q = 500. From the equation of exchange, the value of P is
a. $20.
b. $10.
c. $15.
d. $5.
b. $10.
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Which of the following are contractionary fiscal policies?
A. Decreased taxation and no change in government spending B. Increased taxation and increased government spending C. No change in taxation and increased government spending D. Increased taxation and decreased government spending
Which of the following best describes an economy with full employment?
A. "Full employment occurs only when the economy has a zero percent unemployment rate." B. "No person is unemployed for whatever reason." C. "The level of unemployment that corresponds to the normal friction in the labor market." D. "Everyone who is looking for a job will have one."
In the short run, a competitive firm has a marginal product of labor, MPL = 2L-0.25. The output price is $4 per unit and the wage is $5 per hour. The short-run labor demand curve for the firm is
A) 10L-0.25. B) 8L-0.5. C) 4L0.25. D) 8L-0.25.
Studies show that the supply curve for oranges has shifted. Which of the following could not explain the shift of the supply curve?
a. Weather conditions have changed. b. The price of fertilizer has changed. c. The wage paid to orange pickers has changed. d. The price of oranges has changed. e. The demand for grapefruit has changed.