According to the new classical system, an unanticipated increase in the money stock
a. will shift the aggregate supply schedule only.
b. will shift the aggregate demand schedule only.
c. will shift both the aggregate demand and aggregate supply schedules.
d. None of the above
B
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If the interest rate on a security consists only of the riskless rate, then
A) there is no uncertainty. B) velocity is constant. C) the money supply is fixed. D) the price level is fixed.
Assume that foreign capital flows into a nation rise due to expected increases in stock market appreciation. If the nation has highly mobile international capital markets and a fixed exchange rate system, what happens to the GDP Price Index and monetary base in the context of the Three-Sector-Model? a. The GDP Price Index rises and monetary base rises
b. The GDP Price Index rises and monetary base falls. c. The GDP Price Index and monetary base fall. d. The GDP Price Index and monetary base remain the same. e. There is not enough information to determine what happens to these two macroeconomic variables.
Refer to the information provided in Figure 14.1 below to answer the question(s) that follow.
Figure 14.1Refer to Figure 14.1. Four firms that produce chewing gum form a cartel. The cartel faces the market demand curve given by D. At the profit-maximizing output, the total cost for the cartel is
A. $3,000. B. $3,720. C. $4,800. D. $5,600.
If a monopolistically competitive industry is earning short-run profits, new competitors will enter the industry in the long run and compete away those profits.
Answer the following statement true (T) or false (F)