As a monopolist increases the quantity of output produced, what happens to price (P) and marginal revenue (MR)?
a. both P and MR remain constant
b. P is constant, but MR decreases
c. P decreases, but MR is constant
d. both P and MR decrease, but P falls faster than MR
e. both P and MR decrease, but MR falls faster than P
E
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Whether real seignorage revenue increases when the rate of money growth increases depends on whether
A) the rise in real money holdings outweighs the decline in inflation. B) the rise in inflation outweighs the decline in real money holdings. C) the rise in inflation ratio outweighs the decline in the real supply of currency. D) the rise in the real supply of currency outweighs the decline in inflation.
The purchasing power parity theory
a. is more a predictor of a long-run tendency than of the day-to-day relationship between changes in the price level and the exchange rate b. predicts that exchange rates between two currencies will adjust in the long run to reflect the price level difference between two countries c. is more a predictor of a short-run phenomenon than of a long-run relationship between the price level and the exchange rate between two countries d. is helpful in explaining long-run trends, even though trade barriers and central bank intervention may hinder the usefulness of the theory e. tells us that a country's currency generally will appreciate if its inflation rate is lower than that of the rest of the world
The natural rate of unemployment is any type of unemployment that does not go away on its own even in the long run
a. True b. False Indicate whether the statement is true or false
Which one of the following states a central element of the economic way of thinking?
What will be an ideal response?