The composition of demand and supply in various markets is not important to the question of inflation.
a. True
b. False
Indicate whether the statement is true or false
True
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If the marginal propensity to consume is 0.75, the marginal propensity to save is
A) 0.25. B) 0.5. C) 1. D) 3.
Suppose nominal GDP equaled $10,988 billion while the M2 money supply was $6,063 billion. What was the velocity of the M2 money stock?
a. 0.45 b. 0.55 c. 1.81 d. 2.36
Refer to the information provided in Figure 23.5 below to answer the question(s) that follow.
Figure 23.5Refer to Figure 23.5. If aggregate consumption is the only expenditure in this society, at an income level of $800 billion
A. saving is zero. B. the economy is in equilibrium. C. consumption equals income. D. all of the above.
The figure above shows Prakash's and Gail's production possibilities frontiers for writing books and magazine articles
a. What is Prakash's opportunity cost of a book? What is Gail's opportunity cost? Who has the comparative advantage in writing books? b. Who has the comparative advantage in writing magazine articles? c. According to their comparative advantages, who should write books and who should write magazine articles?