The quantity equation states that the
A) money supply divided by the velocity of money equals the price level divided by real output.
B) money supply times the velocity of money equals the price level times real output.
C) money supply times the price level equals real output divided by the velocity of money.
D) money supply times the price level equals real output times the velocity of money.
Answer: B
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Describe Keynes' criticism of Say's law in a money economy
According to Professor Baotai Wang who examined the crowding out phenomenon inCanada between 1961-2000, as discussed in the Case in Point, government expenditures for health and education
A) increased human capital and encouraged private sector investment, leading to crowding in. B) did not increase the rate of return on private investment and therefore led to crowding out. C) increased human capital and generated strong supply-side effects. D) led to only small increases in human capital.
Use the following graph for a perfectly competitive firm to answer the next question.
The firm's short-run supply curve is
A. the "cd" segment and above on the MC curve. B. the "abcd" segment and above on the MC curve. C. not shown. D. the "bcd" segment and above on the MC curve.
The supply curve of antique reproductions is:
A. relatively elastic. B. relatively inelastic. C. perfectly inelastic. D. unit elastic.