If P denotes the price of goods and services measured in terms of money, then
a. 1/P represents the value of money measured in terms of goods and services.
b. P can be interpreted as the inflation rate.
c. the supply of money influences the value of P, but the demand for money does not.
d. All of the above are correct.
a
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What are the effects of an increase in the population on potential GDP, the quantity of labor, the real wage rate, and potential GDP per hour of labor?
What will be an ideal response?
Which of the following was NOT part of Korean industrial policies?
A) An aggressive promotion of exports along with high levels of protection B) Directed credit and tax breaks given to targeted industries C) Subsidies given to some targeted firms D) Bailing out bankrupt firms without any attempt to dispose distressed firms E) Allowing exporting firms to borrow funds at below-market interest rates
The concept that producing goods and services generates the means and the willingness to purchase other goods and services is
A) the Keynesian approach. B) money illusion. C) Say's law. D) cost-push inflation.
According to the text, as compared to rich countries, most of the poor countries do not fare well because:
a. they have no oil. b. the people in these countries have limited property rights. c. access to education in these countries is very limited. d. high tariffs in these countries prevent international trade. e. they do not have any natural resources.