If the economy is in the vertical portion of the aggregate supply curve, an increase in the money supply in the long run will
A. Decrease the output level.
B. Increase the price level.
C. Increase the output level.
D. Decrease the price level.
Answer: B
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In the above figure, the price paid by the buyer before the tax is ________ per compact disc, and the price paid by the buyer after the tax is ________ per compact disc
A) $20; $20 B) $20; $30 C) $30; $20 D) $30; $30
Suppose that a haircut in your hometown costs $20, while the price for the same haircut in Mumbai is 600 Indian rupees. At which nominal exchange rate is the dollar price lower for the Mumbai haircut?
A) 0.029$/Rs. B) 20Rs./$ C) 25Rs./$ D) 0.04$/Rs.
If Angelo's Pizza Restaurant has a constant marginal cost of $75 for each additional table in the restaurant and a constant marginal cost of $5 for operating each additional table, what is Angelo's long-run marginal cost per table?
A) $70 B) $5 C) $80 D) $75
When the price ceiling on eggs is lifted, there is a shortage of eggs in the market
a. True b. False Indicate whether the statement is true or false