The real value of any variable is its nominal value:
A. adjusted for inflation.
B. holding the base constant.
C. adjusting for income.
D. holding the basket constant.
A. adjusted for inflation.
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The above figure shows the marginal social benefit, marginal private cost and marginal social cost of producing steel. What is the efficient quantity of steel?
A) 0 tons B) 2 tons C) 4 tons D) 8 tons
What entity or entities take the necessary steps to increase or decrease the money supply?
a. commercial banks b. the central bank c. investment firms d. pension plans
The town of Bloomfield is well known for its basketball team. The price of basketball game tickets is determined by market forces. Table 6-8 above shows the demand and supply schedules for basketball games tickets. Refer to Table 6-8. What is the most distinctive feature of the supply curve?
A) The supply curve is perfectly elastic. B) The supply curve is horizontal. C) The supply curve is perfectly inelastic. D) The supply curve is upward sloping.
What role does money play in the circular flow model?