According to monetarists
A. changes in the money supply are the primary cause of changes in real output and the price level.
B. an expansionary fiscal policy will lower interest rates and thereby tend to over-stimulate the economy.
C. changes in the velocity of money are more important than changes in the money supply in causing the level of economic activity to change.
D. the supply of money changes in response to changes in the levels of real output and prices.
A. changes in the money supply are the primary cause of changes in real output and the price level.
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If a worker can produce 20 units of output which can be sold for $4 per unit, what is the maximum wage that firm should pay to hire this worker?
A) It depends on what the going wage rate is in the labor market. B) $80 minus the firm's profit markup C) $80 D) There is insufficient information to answer the question.
The additional amount a person is willing to pay to obtain a good or resource now rather than later is called the
a. interest rate. b. nominal price of future goods. c. inflationary premium. d. risk premium.
People can reasonably expect that an economic system will decide all of the following except:
A. what goods to produce. B. how to produce the goods. C. for whom to produce the goods. D. how to assign initial property rights.
Which of the following tax systems would help reduce income inequality the most?
A) a consumption tax system B) a proportional tax system C) a progressive tax system D) a regressive tax system