In long-run equilibrium after a permanent money-supply increase there follows:
A) an increase in exchange rate, E.
B) a decrease in exchange rate, E.
C) an increase in output, Y.
D) a decrease in output, Y.
E) an unchanged exchange rate, E.
A
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Bianca consumes pizza. Marginal utility theory predicts that when the price of pizza increases
A) Bianca's total utility from pizza will increase. B) Bianca will buy less pizza. C) Bianca's marginal utility from pizza will increase. D) Bianca's demand curve for pizza will shift leftward.
Inflation will
A) decrease the quantity of real GDP demanded. B) decrease aggregate demand. C) increase the quantity of real GDP demanded. D) increase aggregate demand.
The value of the consumer price index increased from 140 to 147 during 2006 . Nathan opened a bank account at the beginning of 2006, and at the end of 2006 his account balance was $12,840 . The purchasing power of Nathan's account increased by 2 percent during the year. We can conclude that Nathan opened his account with a deposit of $11,500 at the beginning of 2006
a. True b. False Indicate whether the statement is true or false
Example: Give an example of “substitutes in production.” Explain how the products meet the economic definition of “substitutes in production.”
What will be an ideal response?