According to liquidity preference theory, the money-supply curve is
a. upward sloping.
b. downward sloping.
c. vertical.
d. horizontal.
c
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Producer surplus
A) increases if market price rises and the supply curve does not shift. B) decreases if market price rises and the supply curve does not shift. C) is equal to the maximum price consumers are willing to pay. D) is the same as the marginal cost. E) always must equal consumer surplus.
The theory of rational expectations concludes that
A. by reacting to the expected effects of a stabilization policy, the public will tend to negate the impact of that policy. B. the public's expectations as to the effects of economic policies will tend to reinforce the effectiveness of those policies. C. the public's expectations can influence the outcome of fiscal policy, but not of monetary policy. D. the public's expectations can influence the outcome of monetary policy, but not of fiscal policy.
Medicare, Part B is
A. compulsory at a low premium. B. voluntary at a low premium. C. voluntary at a high premium. D. compulsory at a high premium.
Assume that an economy has 1500 workers, each working 2000 hours per year. If the average real output per worker-hour is $20, then total output or real GDP will be:
A. $3 million. B. $45 million. C. $30 million. D. $60 million.