The money supply curve is vertical because
a. real income does not influence the quantity of money supplied
b. the price level does not influence the level of spending
c. only the interest rate influences the quantity of money supplied
d. the Federal Reserve sets the money supply
e. nominal income does not influence the quantity of money supplied
D
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A reason why a perfectly competitive firm's demand for labor curve slopes downward is that
A) each additional unit of labor hired is less efficient than previously hired units. B) the extra cost of hiring additional units of labor increases as a firm hires more units of labor. C) in the short run, as more labor is hired, labor's marginal product falls because of the law of diminishing returns. D) the firm's demand curve for the product that uses labor is downward sloping.
The new growth theory that arose in the late 1980s has been described as ________ because it treats technological change as ________
A) exogenous, random unpredictable shocks B) exogenous, generated by market incentives C) endogenous, random unpredictable shocks D) endogenous, generated by market incentives
When the price of a good rises, there is
A) an increase in supply. B) a decrease in supply. C) a decrease in quantity supplied. D) an increase in quantity supplied.
Suppose you have data on durable goods, nondurable goods, fixed investment, government purchases, exports, and imports. Can you compute GDP?
A) No, since data on services and profits are missing. B) No, since data on inventory investment and profits are missing. C) No, since data on inventory investment and services are missing. D) No, since data on services and dividends are missing. E) Yes, all of the necessary components of GDP are given.