According to the quantity theory of money, a 10 percent increase in the money supply leads to a 10 percent increase in:
A. velocity.
B. unemployment.
C. the price level.
D. real GDP.
Answer: C
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On the eve of World War I, gains for unions included all of the following except:
a. substantial wage gains for members in some industries, including bituminous coal mining. b. the establishment of insurance programs to compensate workers injured on the job. c. political victories, including the elevation of the Department of Labor to cabinet-level status. d. legal protection of the closed shop.
Deflation is:
A. a sustained rise in the aggregate price level. B. negative inflation. C. as common as inflation. D. a decline in inflation.
Excise taxes are
a. proportional since everyone pays the same tax rate b. progressive since richer people buy more things c. regressive since they represent a greater percent of poor people's incomes d. proportional taxes since everyone has the same tax bill e. progressive since richer people have higher tax bills
What is a union shop?
a. Only active union members can be hired. b. New employees must join the union after hire. c. Featherbedding adds unneeded workers. d. The employees have created their own union.