According to the extreme monetarist position, using the equation of exchange, an increase in the quantity of money in circulation will
A. Increase real GDP.
B. Have no effect on the price level.
C. Increase the price level.
D. Decrease the velocity of money.
Answer: C
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Production data for Joe's Pizza Parlor are as follows. For simplicity assume that labor is the only input. Each pizza sells for $5. Number of WorkersPizzas Baked Per Day00110218324430532How many workers will Joe hire if he must pay each one $35 a day?
A. 1 B. 2 C. 3 D. 4
Which of the following statements about the price elasticity of demand is correct?
A) The elasticity of demand for a good in general is equal to the elasticity of demand for a specific brand of the good. B) Demand is more elastic in the long run than it is in the short run. C) The absolute value of the elasticity of demand ranges from zero to one. D) Demand is more elastic the smaller the percentage of the consumer's budget the item takes up.
Tax collected based on a taxpayer's spending is known as: a. excise tax
b. consumption tax. c. gift tax. d. income tax.
Tax rebates given for making specific investments will cause the: a. aggregate demand curve to shift rightward. b. aggregate demand curve to shift leftward. c. aggregate supply curve to shift leftward
d. aggregate supply curve to shift rightward.