In the long run, if the money supply increases:
a. most of the resulting rise in nominal GDP will be a result of increases in the exchange rate.
b. most of the resulting rise in nominal GDP will be a result of increases in the price level.
c. most of the resulting rise in real GDP will be a result of increases in the price level
d. most of the resulting rise in real GDP will be a result of increases in the interest rate.
e. most of the resulting rise in real GDP will be a result of increases in aggregate expenditure.
b
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Suppose that Brazil is capital abundant and Chile is natural resource abundant. If timber is natural resource intensive and computers are capital intensive, then according to the Stolper-Samuelson Theorem, the incomes of the owners of ________ are likely to rise in Brazil after trade with Chile begins.
A) capital B) labor C) natural resources D) It is impossible to determine which will be favored.
For each of the following cost functions, find MC, AC, and AVC
a. TC = 20,000 + 10 Q b. TC = 18,000 + Q + 0.2 Q2
Which of the following best illustrates the fallacy of composition?
a. If I stand up at a baseball game I will be able to see the game better; if all fans stood up at a baseball game they would all be able to see the game better. b. If I wore a jacket to a baseball game in October, I would be warmer; if all fans wore jackets they would all be warmer. c. If I purchase fewer concessions at a baseball game, I will save money; if all fans purchase fewer concessions then all can save money. d. If I yell more during a baseball game it will be louder if all fans yell more during the game it will be much louder.
Recall the Application about choosing a price for drones based on a linear demand curve to answer the following question(s).Recall the Application. Suppose a firm that produces drones has a linear demand curve for its product, with a vertical intercept of $1,500. If the firm initially charged a price of $500 and then raised its price to $750, the firm's profit will:
A. increase. B. decrease. C. stay the same. D. decrease until it becomes zero.