If income is $20 billion, the price level is 5, and the stock of money is $10 billion, what is the income velocity of money?
A. 0.4
B. 2.5
C. 4
D. 10
Answer: D
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Two countries, Baltonia and Polonia, have aggregate production functions of the form:
Y = A × K1/3 × H2/3 Both countries have the same number of efficiency units of labor and use the same technology. However, Baltonia has a lower capital stock than Polonia. Which of the following is likely to be true in this case? A) The poverty rate in Baltonia is lower than that in Polonia. B) The gross domestic product of Baltonia is lower than that in Polonia. C) The gross domestic product of Baltonia is higher than that in Polonia. D) The Human Development Index of Baltonia is higher than that of Polonia.
Give an example of a price ceiling. Draw a corresponding diagram and explain why there is a continuing shortage.
What will be an ideal response?
The fact that there is a very limited amount of land in Hong Kong means the supply of new apartments in Hong Kong is
A) inelastic. B) elastic. C) unit elastic. D) perfectly elastic. E) limited by the demand.
In a small Asian country, it is estimated that changing the level of capital from $8 million to $12 million will increase real GDP from $5 million to $6 million
If the number of hours worked in the labor force does not change, what does this information tell you about the slope of the per-worker production function in this range? A) The slope is -4. B) The slope is 1/4. C) The slope is 4. D) The slope is 8.