If the economy's real GDP is growing at 3 percent each year and velocity is constant, for the price level to increase:
a. the money supply would have to grow at more than 3 percent per year.
b. the money supply would have to grow at exactly 3 percent per year.
c. the money supply would have to grow at less than 3 percent per year.
d. the money supply would have to remain stable.
a
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Which of the following is typically not counted in GDP?
A) any nonmarket good and services B) income generated from apartment rentals C) illegal drug sales D) all of the above E) none of the above
Using a TR-TC graph, a firm maximizes profit by producing the output level where the greatest
a. vertical distance occurs between the MR and MC curves b. vertical distance occurs between the TR and TC curves, and the TR curve is above the TC curve c. total revenue occurs d. horizontal distance occurs between the TR and TC curves, and the TR curve is above the TC curve e. horizontal distance occurs between the MR and MC curves, and the MR curve is rising
Which one of the following economists has played a central role in the development of the "economics of collective decision making," better known as public choice analysis?
a. Alfred Marshall b. John Maynard Keynes c. James Buchanan d. Milton Friedman
Money illusion is
A. when people think they are better off when their income increases even though prices have increased by the same amount. B. could not exist if the economy did not have competitive markets. C. when people are motivated by self-interest. D. a basic condition that all classical economists assume people have.