If the total money supply is $6 trillion, real Gross Domestic Product (GDP) is $9 trillion and the price level is 2, then the equation of exchange tells us that velocity equals
A. 3.
B. 13.5.
C. 18.
D. 27.
Answer: A
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Firms in which of the following industries can earn an economic profit in the long run?
A) both monopolistic competition and monopoly B) perfect competition C) monopoly D) monopolistic competition E) monopolistic competition and perfect competition
Explain the capture hypothesis
What will be an ideal response?
Refer to the graph below. If tax rates are between b and d, then supply-side economists are of the opinion that a(n):
A. Increase in tax revenues will increase tax rates
B. Decrease in tax rates will increase tax revenues
C. Increase in tax rates will increase tax revenues
D. Decrease in tax revenues will decrease tax rates
Identify at least three key factors in the HPAE's economic success?
What will be an ideal response?