According to the quantity theory of money, a decision on the part of all business firms currently paying employees on a monthly basis to begin paying on a weekly basis would be expected to
A. increase velocity and increase nominal GDP.
B. increase velocity and decrease nominal GDP.
C. decrease velocity and increase nominal GDP.
D. decrease velocity and decrease nominal GDP.
Answer: A
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Refer to the figure below. If Laura and Chris are the only two consumers in this market then at a price of $2.50 per pound, the market demand for hamburger is: 
A. 4.5 pounds per week B. 1.5 pounds per week C. 3 pounds per week D. 4 pounds per week
Government in the United States spends more as a percentage of GDP than in most other industrialized nations.
Answer the following statement true (T) or false (F)
When recessions are the result of slowing growth in potential output, the government's best policy is to:
A. decrease aggregate supply. B. promote saving and investment. C. reduce government spending. D. increase aggregate demand.
The situation in which one firm can produce the total output of the market at lower cost than several firms is called
A) natural monopoly. B) pure monopoly. C) ruling monopoly. D) cost monopoly.