Refer to Figure 10.4. Suppose the economy's equilibrium starts out with an output gap of 1, and real GDP increases so the output gap increases to 2
If the Fed keeps the money supply constant, money demand will ________ and the nominal interest rate will ________. A) increase; increase
B) increase; decrease
C) increase; remain constant
D) remain constant; remain constant
A
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Refer to the figure above. What is the domestic price of calculators in Barylia?
A) $10 B) $30 C) $40 D) $50
Data shows that United States college students purchase more e-books than German college students. Assuming that all students have identical preferences for e-books and textbooks, what is the likely explanation for this result?
A) Taxes on textbooks are higher in the United States than taxes on textbooks in Germany. B) Taxes on textbooks are lower in the United States than taxes on textbooks in Germany. C) The price of textbooks is cheaper in the United States than textbooks in Germany. D) Both A and C.
Which of the following is a barrier to economic growth in many developing nations?
A) the shortage of labor B) the lack of natural resources C) the lack of economic freedom D) the low level of restrictions in the labor market
Mark and Charles are roommates at college. Each has written a 25-page term paper for the same English class. They are equally poor typists. Charles types his own paper and gets paid by Mark to type his, too. On the basis of the information given, which one of the following must be true?
a. Mark is wealthier than Charles. b. Mark needs more time to study than Charles. c. Charles hates typing. d. Mark and Charles have different utilities for typing but place the same value on time. e. Mark's opportunity cost of typing is higher than Charles's.