Economic variables whose values are measured in goods are called
a. dichotomous variables.
b. nominal variables.
c. classical variables.
d. real variables.
d
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Referring to Figure 19.2, the effect of a decrease in Japanese prices is represented by a movement from point
A) d to a. B) d to c. C) c to d. D) c to b.
The equilibrium price will rise and the equilibrium quantity might increase, decrease, or stay the same when the
A) demand and the supply of a good both increase. B) demand for a good increases and the supply of it decreases. C) demand for a good decreases and the supply of it increases. D) demand and the supply of a good both decrease.
In an all-currency economy in which real output and the real interest rate are fixed and the rates of money growth and inflation are constant, the inflation rate equals
A) the real interest rate. B) the nominal interest rate. C) the growth rate of the nominal money supply. D) the level of real seignorage revenue.
Which of the following equations is most likely to represent short-run aggregate supply according to the misperceptions theory?
A) Y = 6000 B) Y = 6000 + 50(P - Pe) C) P = 2 D) PY = 12,000