If P = 12, V = 6, and M = 1,000, then GDP is
A. 1,000.
B. 2,000.
C. 3,000.
D. 500.
D. 500.
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In the figure above, if the market is unregulated, the price will be
A) $250 per unit. B) $200 per unit. C) $150 per unit. D) $100 per unit.
Compared to a fixed exchange rate, a monetary union
A) involves soft pegs. B) does not allow adjustments to exchange rates. C) is managed at the International Monetary Fund. D) has no central bank.
Counting only qualified and part-time workers as employed tends to understate the actual amount of unemployment
Indicate whether the statement is true or false
Suppose that an expansionary gap of $500 billion exists in the economy, and the marginal propensity to consume is 0.8 . Which of the following correctly describes a discretionary fiscal policy that will be just sufficient to close this expansionary gap?
a. Increase government spending by $250 billion. b. Increase taxes by $125 billion. c. Decrease government spending by $250 billion. d. Decrease taxes by $125 billion.