The view that excessive growth of the money supply over long periods leads to inflation:
A. is accepted by the monetarists but not by mainstream macroeconomists.
B. is the main contribution of the rational expectations theory.
C. had been absorbed into the mainstream of macroeconomics.
D. is known as the monetary rule.
C. had been absorbed into the mainstream of macroeconomics.
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Supply is unit elastic when the
A) supply curve is upward sloping. B) price elasticity of supply is positive. C) percentage change in the quantity supplied equals the percentage change in price. D) supply curve is horizontal. E) supply curve is vertical.
If planned autonomous investment is 500, autonomous consumption 300, induced consumption 2500, savings 500, and government spending and taxes zero, then
A) Ep is 3300 and the economy is in equilibrium. B) Ep is 3300 and the economy is out of equilibrium. C) Ep is 3500 and the economy is in equilibrium. D) Ep is 3500 and the economy is out of equilibrium.
The trade-off between current consumption and the production of capital goods is also a trade-off between
A) the future cost for capital goods and future cost of consumption goods. B) having fewer needs and more wants in the future. C) satisfying the needs of the poor and the wants of the wealthy. D) current consumption and future consumption.
Which of the following factors will increase labor productivity in the United States?
a. An aging labor force b. A decline in the number of women entering the workforce c. An increase in unskilled workers d. An increase in the average level of education e. A decrease in the number of educated immigrants