If input prices change at exactly the same rate as output prices, the aggregate supply curve will be vertical.
Answer the following statement true (T) or false (F)
True
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Suppose that monetary neutrality and the Fisher effect both hold. An increase in the money supply growth rate increases
a. the inflation rate and real interest rates. b. the inflation rate, but not real interest rates. c. real interest rates, but not the inflation rate. d. neither the inflation rate nor real interest rates.
The value of Austria's exports minus the value of Austria's imports is called
a. Austria's net exports. b. Austria's net imports. c. Austria's foreign portfolio investment d. Austria's foreign direct investment.
When business firms get to be too big, they are suffering from ____________________.
Fill in the blank(s) with the appropriate word(s).
The demand for computers has risen dramatically at the same time that the unit cost of production has decreased. As a result, we can expect
A. a decrease in price and no predictable impact on output. B. a definite decrease in price and increase in output. C. an increase in output with no predictable change in price. D. no predictable changes in either price or output.