Velocity is not a constant, and it normally increases when interest rates rise.
Answer the following statement true (T) or false (F)
True
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The short-run Phillips curve shifted during the 1970s primarily because of
A) the two large oil price shocks. B) the changing demographics of the population. C) tight monetary policy. D) easy fiscal policy.
Constant returns to scale for a firm would imply that
A. doubling input usage results in more than double the output. B. doubling input usage results in less than double the output. C. doubling input usage results in doubling the output. D. there are decreasing costs per unit of output.
Under a constant growth rate of money rule of 5 percent in an economy in which Real GDP grows at an average rate of 5 percent and velocity is constant, the inflation rate is
A) 5 percent. B) -5 percent. C) 25 percent. D) -25 percent. E) constant at zero.
When women entered the workforce in greater numbers after World War II, this had its greatest impact on growth through which source?
A. An increase in the number of workers B. Education C. An increase in the productivity of workers D. An increase in economic freedom