The simple quantity theory of money predicts that the larger the percentage change in the money supply, the larger the percentage change in Real GDP
Indicate whether the statement is true or false
False
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_____________are unprocessed natural products used in production.
Fill in the blank(s) with the appropriate word(s).
Which of the following scenarios would result in economic growth in the country of Everland?
a) GDP and prices double. b) GDP and population doubles, while prices remain the same. c) Population doubles while GDP and prices remain the same. d) GDP doubles while prices remain the same.
Starting from long-run equilibrium, a large tax cut will result in a(n) ________ gap in the short-run and ________ inflation and ________ output in the long-run.
A. expansionary; higher; higher B. expansionary; higher; potential C. recessionary; higher; potential D. recessionary; lower; lower
If a regulatory agency mandates that a natural monopoly charge a price equal to its average cost:
A. the firm will eventually exit the industry. B. the firm will earn economic profits greater than zero. C. other firms will find it profitable to enter this industry. D. the firm will earn economic profits equal to zero.