The quantity of money held in response to interest rates is the:
a. precautionary motive for holding money.
b. unit-of-account motive for holding money.
c. transactions motive for holding money.
d. speculative motive for holding money.
d
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An increase in the price level leads to
A) an upward movement along the aggregate supply curve. B) a downward movement along the aggregate supply curve. C) a leftward shift of the aggregate supply curve. D) a rightward shift of the aggregate supply curve. E) neither a movement along the aggregate supply curve nor a shift of the aggregate supply curve.
In a perfectly competitive market, which of the following will increase the economic profit the firms make in the short run?
A) a decrease in market demand B) an increase in market demand C) an increase in labor costs D) an increase in the number of firms
Normative analysis is concerned with "what ought to be," while positive analysis is concerned with "what is."
Indicate whether the statement is true or false
Assume that Sweden will specialize in either boats or cars. What is their opportunity cost of producing two boats?
