Suppose the money growth rate is 3 percent, velocity is constant, and real GDP is growing at 2 percent. What is the inflation rate?
A) 1 percent
B) 5 percent
C) 3 percent
D) 6 percent
A
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Refer to the accompanying figure. Moving from point B to point A, the opportunity cost of 25 more salads is:
A. 5 pizzas. B. 20 pizzas. C. 10 pizzas. D. 15 pizzas.
Command systems in the Soviet Union and pre-reform China failed primarily because of:
A. the failure to accumulate and use capital. B. greater resource scarcity than in market systems. C. the failure to specialize in production. D. coordination and incentive problems.
What happens in a duopoly if both firms try to act as the Stackelberg leader?
What will be an ideal response?
Suppose that the total labor force is 100 individuals with 10 unemployed. The unemployment rate is ________. Now assume that 10 people drop out of the labor force and that 10 remain unemployed. The new unemployment rate is ________
A) 9 percent; 10 percent B) 10 percent; 9 percent C) 10 percent; 11 percent D) 11 percent; 10 percent