Changes in the growth rate of the velocity of money can't permanently shift the AD curve because:
A. in the long run, the inflation rate is determined by the money supply growth rate.
B. in the long run, the inflation rate is determined by the growth rate of the velocity of money.
C. in the long run, the inflation rate will be equal to the Solow inflation rate.
D. changes in the growth rate of the velocity of money shift the SRAS curve, not the AD curve.
Ans: A. in the long run, the inflation rate is determined by the money supply growth rate.
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A production or consumption quota that can be bought or sold is called:
A. a buyers' or sellers' quota. B. a tax. C. a tradable allowance. D. a subsidy.
Under which of the following conditions will the actual rate of unemployment tend to rise above the natural rate of unemployment?
a. Prices are stable and have been for the last four years. b. Inflation is 3 percent and was widely anticipated more than a year ago. c. Expansionary monetary policies lead to an unexpected increase in inflation from 3 percent to 7 percent. d. Restrictive monetary policies lead to an unexpected reduction in inflation from 6 percent to 2 percent.
The prisoner's dilemma:
A. can involve two players. B. can be summarized in a payoff matrix. C. leads to a less-than-ideal outcome for all players. D. All of these statements are true.
If the variable cost curve is a straight line, then the
A. marginal cost curve may be U-shaped. B. marginal cost curve is upward sloping. C. marginal cost curve will be U-shaped. D. marginal cost curve will be horizontal.