In the aggregate demand and aggregate supply model, an increase in the growth rate of the velocity of money differs from an increase in money supply growth rate in that:
A. the SRAS curve will eventually shift back to its original position after an increase in money supply growth.
B. the AD curve will eventually shift back to its original position after an increase in velocity growth.
C. the SRAS curve will eventually shift upwards after an increase in velocity growth.
D. the AD curve will eventually shift back to its original position after an increase in money supply growth.
Answer: B. the AD curve will eventually shift back to its original position after an increase in velocity growth.
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A) perfectly elastic. B) elastic but not perfectly elastic. C) unit elastic. D) inelastic but not perfectly inelastic. E) perfectly inelastic.
Given freedom of movement for both goods and resources. If Florida producers specialize in oranges and Georgia producers specialize in peaches, it would be reasonable to conclude that
What will be an ideal response?
If a fishing boat owner brings 10,000 fish to market and the market price is $7 per fish, she will have $70,000 in total revenue. If the average variable cost of 10,000 fish is $4 and the fixed cost of the boat is $20,000, what is her profit?
A. $3. B. $1,000. C. $3,000. D. $10,000.
The economic problem with Medicare financing is that
A. there is a built-in incentive to consume more services. B. there is a built-in incentive to travel to Canada to receive medical services. C. there is a built-in incentive to provide fewer services by doctors. D. the cost of providing services is falling annually.