The OPEC oil cartel has difficulty maintaining high prices in the long run because the supply of oil is more inelastic in the long run than in the short run
a. True
b. False
Indicate whether the statement is true or false
False
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The ratio of nominal GDP to the stock of money is the
A. velocity of money. B. real GDP. C. money multiplier. D. GDP deflator.
How should a natural monopoly be regulated under the social interest theory of regulation?
A) by setting price equal to the average cost of production B) by allowing a price that maximizes the profit of the natural monopoly C) by using a marginal cost pricing rule D) by subsidizing other producers to compete with the monopoly E) by using rate of return regulation
Changes in relative prices occur when
A) all prices move together. B) all exchange rates move together. C) product prices change at different rates. D) exchange rate appreciation is greater than price appreciation.
Suppose the intersection of the IS and LM curves is to the left of the FE line. What would most likely eliminate a disequilibrium among the asset, labor, and goods markets?
A) A rise in the price level, shifting the LM curve up and to the left B) A fall in the price level, shifting the LM curve down and to the right C) A rise in the price level, shifting the IS curve up and to the right D) A fall in the price level, shifting the IS curve down and to the left