In the demand and supply model of the money market, the
i. supply of money curve is a vertical straight line.
ii. supply of money is the quantity that must be held by households and firms.
iii. quantity of money is determined by Fed actions.
A) i only B) ii only C) iii only D) ii and iii E) i, ii, and iii
E
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Endogenous growth theory attempts to
A) replace the Solow model with a model in which money growth plays a key role. B) explain how societies can more easily reach the "Golden Rule." C) show how population growth reduces capital and output. D) explain why productivity changes.
The supply curve of labor facing an employer in a perfectly competitive labor market is
a. upward sloping b. downward sloping c. horizontal d. greater than MLC e. the MRP curve
Using Figure 1 above, if the aggregate demand curve shifts from AD2 to AD3 the result in the long run would be:
A. P2 and Y2. B. P1 and Y2. C. P4 and Y2. D. P1 and Y1.
Higher interest rates can cause the ________ curve for new cars to ________.
A. demand; shift to the right. B. supply; shift to the right. C. demand; shift to the left. D. supply; shift to the left.