If you believe that velocity is constant and that the aggregate supply curve is vertical, then the quantity theory of money would predict that a doubling of the money supply would cause a doubling of
a. nominal output and real output.
b. nominal output and no change in real output.
c. real output and no change in nominal output.
d. the price level and real output.
b
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Refer to Figure 3.6. Answer the following questions about the game represented in the figure:
a. What type of game is represented by the payoff matrix? b. Does Terrance have a dominant strategy, and if so, what is it? c. Does Phillip have a dominant strategy, and if so, what is it? d. At what outcome or outcomes do the players coordinate? e. Are there any Nash equilibria, and if so, what, are they?
Suppose the market for grass seed is expressed as:
Demand: QD = 100 - 2p Supply: QS = 3p Price elasticity of supply is constant at 1. If the supply curve is changed to Q = 8p, price elasticity of supply is still constant at one. Yet with the new supply curve, consumers pay a larger share of a specific tax. Why?
One of the things that employers can do to lessen the moral hazard problem involving their employees is to pay them in advance for their work
a. True b. False Indicate whether the statement is true or false
In monopolistic competition, a firm has a limited degree of "price-making" ability. This means that the firm will:
A. Always earn an economic profit B. Set price equal to marginal cost C. Set price above marginal cost D. Produce at minimum average total cost