If the fraction of the economy's nominal GDP held by the public in the form of money is 20 percent, income velocity in the economy is
A) 5.
B) 80 percent.
C) 0.20.
D) 20.
A
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The largest component of spending in GDP is
A) government spending. B) net export spending. C) investment spending. D) consumption spending.
Explain, in detail, how the adjustment to macroeconomic equilibrium occurs when spending is less than production. Be sure to discuss how inventories play a crucial role in the adjustment process
State what happens to GDP and employment during the adjustment process.
At a short-run equilibrium output equals ________, while at a long-run equilibrium output equals ________.
A. an output level consistent with the inflation rate; potential output B. the monetary policy reaction function; aggregate demand C. aggregate demand; the monetary policy reaction function D. potential output; an output level consistent with the inflation rate
Product variety and innovation are ________ associated with the oligopoly model.
A. rarely B. never C. only D. benefits