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.
c
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Because of the presence of asymmetric information problems in credit markets, an expansionary monetary policy causes a ________ in net worth, which ________ the adverse selection problem, thereby ________ increased lending to finance investment
spending. A) decline; increases; encouraging B) rise; increases; discouraging C) rise; reduces; encouraging D) decline; reduces; discouraging
If the United States CPI was 37 in 1973 and in 2016 it was 215.3. By what percent did prices increase in the United States between 1973 and 2016? (Not the annual rate of change, but total.)
A. 5 B. 482 C. 545 D. 48
In long-run equilibrium, a monopolistically competitive producer achieves:
A. neither productive efficiency nor allocative efficiency. B. both productive efficiency and allocative efficiency. C. productive efficiency but not allocative efficiency. D. allocative efficiency but not productive efficiency.
If a profit-maximizing firm is currently producing output where MR = MC in the short run, it should
A. decrease output. B. increase output. C. not change output. D. shut down.