In the United States, the long-run inflation rate can be expressed simply as the growth rate of money
A) plus the long-run growth rate of velocity.
B) minus the long-run growth rate of velocity.
C) plus the long-run growth rate of real GDP.
D) minus the long-run growth rate of real GDP.
D
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The vertical distance between a firm's average total cost curve, ATC, and its average variable cost curve, AVC
A) decreases as output increases. B) is equal to its marginal cost, MC. C) is equal to its total fixed cost, TFC. D) is equal to its average product.
An economy accumulates capital when
A) its capital-labor ratio increases. B) it increases the number of workers. C) GDP per capita increases. D) labor productivity declines.
f the price of hairbrushes decreases by 20 percent, the quantity demanded increases by 2 percent. The price elasticity of demand is:
A. 0.1, and is elastic. B. 10 and is elastic. C. 0.1 and is inelastic. D. 10 and is inelastic.
Present value:
A. is always greater than the future value of money. B. does not account for inflation. C. is how much an amount of money obtained in the future is worth today. D. All of these statements are true.