Define each of the symbols and explain the meaning of M V = P Y
M is the quantity of money, V is the velocity of money, P is the price level, and Y is the quantity of output. P Y is nominal GDP. The amount people spend should equal the amount of money in the economy times the average number of times each unit of currency is spent.
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Long-term contracts become longer:
A. when spot markets work well. B. when the exchange environment is more complex. C. when marginal costs are declining. D. when specialized investment becomes more important.
The Bureau of Labor Statistics would categorize a retiree who is not working as
A) employed. B) unemployed. C) a discouraged worker. D) out of the labor force.
Calculate the MPS.
Welfare payments _____
a. often increase the marginal cost of being employed b. often decrease the marginal cost of being employed c. have led to a tremendous decline in poverty since 1968 d. have no relationship to the marginal cost of being employed