According to the quantity theory of money, increases in the money supply lead to
A) decreases in nominal Gross Domestic Product (GDP).
B) increases in the price level.
C) decreases in the price level.
D) increases in taxes.
B
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The largest number of individuals of working age in the U.S. population are ________
A) discouraged workers B) unemployed C) employed D) not in the U.S. labor force
According to the Taylor rule, the Fed will set the federal funds rate target based on which of the following?
A) an estimated long-run real interest rate B) the current deviation of the actual inflation rate from the Fed's inflation objective C) the proportionate gap between actual real GDP and a measure of potential real GDP D) all of the above
If fixed cost is $200,000 and variable cost is $30 per unit over the relevant range of output, when 10,000 units are produced, the average total cost will be:
A. $20. B. $30. C. $50. D. $70.
When comparing perfect competition and monopoly, a major assumption made is that
A) the monopolist faces a downward sloping demand curve. B) consumers only care about the price of the good and not whether the seller is a monopoly or not. C) the costs of production are the same under monopoly as under perfect competition. D) the monopolist can make an above normal rate of return.