One of the main reasons behind hyperinflation episodes is:
A) a decrease in real GDP. B) large government budget deficits.
C) high tax rates. D) a decrease in the demand for consumer goods.
B
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As firms expect future profits to increase, they increase their investment. As a result, real GDP rises above potential GDP. If the Fed followed Friedman's k-percent rule, the Fed would
A) continue allowing the quantity of money to grow at "k" percent. B) increase the quantity of money more than usual. C) decrease the quantity of money. D) raise the federal funds rate. E) lower the federal funds rate.
All individuals and firms in a country must gain from trade in order for it to be beneficial to the nation
Indicate whether the statement is true or false
The long-run average total cost curve of a firm envelops many short-run average total cost curves
a. True b. False Indicate whether the statement is true or false
Table 7-2 This table refers to five possible buyers' willingness to pay for a case of Vanilla Coke.
Buyer Willingness To Pay David $8.50 Laura $7.00 Megan $5.50 Mallory $4.00 Audrey $3.50 Refer to Table 7-2. If the market price is $3.80, a. David’s consumer surplus is $4.70 and total consumer surplus for the five individuals is $9.50. b. David, Laura, and Megan will be the only buyers of Vanilla Coke. c. Megan’s consumer surplus is $1.70 and total consumer surplus for the five individuals is $9.80. d. the demand curve for Vanilla Coke, taking the five individuals into account, is horizontal.