Suppose real money demand is L = 0.8 Y - 100,000 (r + ?e). If the nominal money supply is 12,000, real output is 15,000, the real interest rate is .02, and the expected inflation rate is .01, then the price level is
A) 3/4.
B) 1.
C) 4/3.
D) 3.
C
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In the current Post-Industrial economy, international trade in services (including banking and financial services)
A) dominates world trade. B) does not exist. C) is an increasingly important component of global trade. D) is relatively stagnant. E) far surpasses the predictions of economist Alan Blinder.
The change in total cost resulting from a one-unit increase in production is called: a. average fixed cost
b. average variable cost. c. marginal cost. d. marginal revenue.
A requirement that the budget be balanced each and every year would worsen the severity of economic fluctuations by preventing which of the following from working?
a. budget surpluses b. budget deficits c. automatic stabilizers d. manual stabilizers
In a market economy, who or what determines who produces each good and how much is produce
A. the government B. lawyers C. lotteries D. prices