In the long run, the Fed can change the inflation rate but not the unemployment rate
a. True
b. False
A
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The table above shows a total product schedule. Suppose that labor costs $20 per worker and fixed costs are $60. The average total cost of producing 80 units equals ________ per unit
A) $0.75 B) $1.00 C) $1.75 D) $60 E) $0.25
One of the implications of new growth theory is that economic growth arises from
A. financial safety nets for the poor, such as Medicaid. B. investments in knowledge. C. reductions in the birth rate. D. more government spending, such as military spending.
A decrease in the money supply, in the short run (before the price level has adjusted to restore general equilibrium), causes output to ________ and the real interest rate to ________.
A. rise; fall B. fall; fall C. fall; rise D. rise; rise
If nominal GDP is $600 billion and the money supply is $200 billion, the velocity of money is
A. 0.33. B. 1.2. C. 3. D. 12.