Suppose the quantity of money and real GDP do not change. If velocity increases, then the
A) price level will fall.
B) price level will rise.
C) inflation rate will fall.
D) real interest rate will fall.
E) real interest rate will rise.
B
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Policy-oriented economists seek to develop theories to
A. explain how things work, so policies can be formulated. B. describe what happened in a particular time period in history. C. describe current economic events. D. find correlations between events. E. change people’s values and ethics.
A market will experience a ____ when the price is above equilibrium and a ____ when the price is below equilibrium.
A. shortage, shortage B. surplus, surplus C. shortage, surplus D. surplus, shortage
If the real wage is equal to 8 widgets, and only an integer number of workers can be hired, the Gizmo company should hire
A) 2 workers. B) 3 workers. C) 4 workers. D) 5 workers.
In general, monopolistically competitive firms earn profits _____.
(A) Higher than oligopolies. (B) Slightly above their costs in the long run. (C) Well above their costs in the long run. (D) About the same as oligopolies.