If the quantity of money starts to grow more rapidly than real GDP and velocity does not change, the result is
A) slower growth in the price level.
B) an increase in investment.
C) more rapid growth in potential GDP.
D) the inflation rate rises.
E) an eventual slowing in the growth rate of the quantity of money.
D
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Consumer surplus exists when a
A) person buys something with a marginal benefit less than what they paid. B) person buys something with a marginal benefit exactly what they paid. C) person buys something with a marginal benefit more than what they paid. D) producer sells something for more than it is worth. E) person buys something with a marginal cost less than what they paid.
Natural resources are:
a. not considered scarce because no one pays for them. b. only desired for use in producing other goods. c. included in the category of resources called land. d. available in unlimited quantities.
When Andrew earns no income, his base consumption is $500 . When he earns $3,000 per week, he consumes $2,100 per week and saves the rest. If his weekly income increases by $1,000 . then his total consumption is expected to increase to _____
a. $5,800 b. $3,300 c. $6,900 d. $1,500
Discretionary fiscal policy is so named because it:
A. involves specific changes in T and G undertaken expressly for stabilization at the option of Congress. B. is undertaken at the option of the nation's central bank. C. occurs automatically as the nation's level of GDP changes. D. is invoked secretly by the Council of Economic Advisers.