When the aggregate price level (P) is multiplied by real aggregate income (Y), the result is
A. the real aggregate price level.
B. aggregate money demand.
C. the aggregate money multiplier.
D. nominal income.
Answer: D
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If a firm is experiencing diseconomies of scale, then the long-run average cost curve is
A) falling. B) rising. C) horizontal. D) shifting.
If the British price level rose relative to the Swiss price level, there would be
a. a rightward movement along the supply of Swiss francs curve in the pound-franc market b. a leftward movement along the supply of Swiss francs curve in the pound-franc market c. an increased supply of Swiss francs to the pound-franc market d. a decreased supply of Swiss francs to the pound-franc market e. no change of the supply of Swiss francs curve in the pound-franc market
Inflation increases the use of money as a store of value
a. True b. False Indicate whether the statement is true or false
Monetarists believe
A) Real GDP is not determined by M in the long run. B) velocity is constant. C) the SRAS curve is vertical. D) a and c E) a, b and c