In the long run, what is the only factor that changes if the money supply increases when the economy is at full employment?
a. Employment increases.
b. The RGDP increases.
c. Aggregate supply increases.
d. Price level increases.
d. Price level increases.
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Though large firms have the knowledge and resources to utilize a better pricing strategy, many choose to use cost-plus pricing. One reason for this is that
A) large firms do not have to maximize their profits because they face little competition from other firms. B) firms often adjust the markup they charge to reflect current demand. C) there is less risk of violating antitrust laws if a cost-plus pricing strategy is used rather than a profit-maximizing pricing strategy. D) the additional revenue that would result from a profit-maximizing pricing strategy is an insignificant fraction of the firms' revenues.
Do you think it is in the material interests of high-income countries to help low-income countries improve their economic performance? Why or why not?
What will be an ideal response?
A supply curve slopes upward because
a. as more is produced, total cost of production falls. b. an increase in input prices increases supply. c. the quantity supplied of most goods and services increases over time. d. an increase in price gives producers an incentive to supply a larger quantity.
Suppose the quantity demand of a product increases from 32 units to 40 units and income increases from €20,000 to €22,000. What is the Income Elasticity of Demand?
a) 0.4. b) -0.4. c) - 2.5. d) 2.5.