If you divide the amount of nominal GDP by the stock of money, you have computed the
A. multiplier.
B. price level.
C. velocity of circulation.
D. inflation rate.
Answer: C
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Refer to Figure 13-4. What is the area that represents the total variable cost of production?
A) 0P0aQa B) P0abP1 C) P1bdP3 D) 0P1bQa
If inventories are being depleted, firms may respond by cutting prices
a. True b. False Indicate whether the statement is true or false
Comparative advantage is related most closely to which of the following?
a. output per hour b. opportunity cost c. efficiency d. bargaining strength in international trade
If supply decreases and demand increases,
A. the effect on the market clearing price is indeterminate, and the equilibrium quantity definitely falls. B. the market clearing price definitely rises, and the equilibrium quantity falls. C. the market clearing price definitely rises, and the equilibrium quantity is indeterminate. D. the market clearing price definitely falls, and the effect on the equilibrium quantity is indeterminate.