The quantity of money demanded is proportional to
A) real GDP.
B) the price level.
C) the nominal interest rate.
D) the real interest rate.
E) the inflation rate.
B
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The demand curve shown in the figure above is ________ over the price range from $0.90 to $1.10 per pack
A) perfectly elastic B) perfectly inelastic C) unit elastic D) elastic but not perfectly elastic E) inelastic but not perfectly inelastic
Given the accelerationist Phillips curve ?? = - 0.3 (U - 6 ) + ?, suppose that inflation in the preceding period was 3 percent, unemployment is 6 percent, and there is a price shock of 2 percent. The current inflation rate is ________
A) 3 percent B) 0.2 percent C) 5 percent D) 1 percent E) none of the above
In the above graphs a direct relationship is shown by
A) Graph A. B) Graph B. C) Graph C. D) Graph D.
It is true that a stable economy occurs when
a. total injections into the circular flow are large enough to make up for government tax leakages. b. total leakages from the circular flow are great enough to offset the effects of government spending. c. total planned leakages from the circular flow are exactly equal to total planned injections into the circular flow. d. actual saving is equal to planned investment.