The money supply is 4,000 . nominal GDP is 8,000 . and real GDP is 2,000 . Which of the following is 2?
a. the price level and velocity.
b. the price level but not velocity.
c. velocity but not the price level.
d. neither the price level nor velocity.
c
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Changes in the macro environment affect individual firms and industries through the microeconomic factors of demand, production, cost, and profitability
Indicate whether the statement is true or false
Specialization of labor means that: a. production requires a special kind of labor
b. the overall skill level of labor is increasing. c. individuals produce goods other than those they want to consume. d. individuals achieve self-sufficiency in production. e. exchange within an economy consists of trading in services.
If there's demand-pull inflation in the economy, then government policy should
a. increase taxes and cut spending, which would shift AD to the left b. increase taxes and spending, which would shift AD to the left c. decrease taxes and spending, which would shift AD to the left d. decrease taxes and increase spending, which would shift AD to the right e. increase taxes and cut its spending, which would shift AS to the left
A currency devaluation is a(n):
A. increase in the official value of a currency in a fixed-exchange-rate system. B. decrease in the value of a currency relative to other currencies. C. reduction in the official value of a currency in a fixed-exchange-rate system. D. increase in the value of a currency relative to other currencies.