Consider an economy where the only goods traded are coconuts and pineapples. Last year, 100 coconuts were sold at €1 apiece, and 200 pineapples were sold at €2.50 apiece. If the money supply was €100, what was velocity?
A. 30
B. 15
C. 6
D. 5
Ans: C. 6
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When output is below its full-employment level, the short-run aggregate supply will shift down and to the right because
A) the expected price level will be below the actual price level. B) workers' wages will decline. C) prices of nonlabor inputs will rise. D) workers' wages will rise.
Corrective taxes enhance efficiency, but the cost to administer them exceeds the revenue they raise for the government
a. True b. False Indicate whether the statement is true or false
About what percent of the government's budget is authentic discretionary spending?
A. 20% B. 35% C. 65% D. 10%
Disposable personal income is
A. the dollar value of all final goods and services produced in a country in a year. B. the amount of monetary payments households actually receive before paying personal income taxes. C. the amount of monetary payments households actually receive after paying personal income taxes. D. the total of factor payments to owners of resources.