According to the equation of exchange, if M = 200, P = 100, and Q = 10, the V is:
A. 20.
B. 2.
C. 10.
D. 5.
Answer: D
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Graphically, producer surplus is the:
A) difference between the demand curve and the price a consumer pays. B) difference between the supply curve and the price a consumer pays. C) difference between total cost and total revenue. D) product of price of a good and quantity sold.
A decrease in government spending would cause all but one of the following to happen. Which is the exception?
a. The government's budget deficit would shrink. b. The interest rate would decrease. c. Consumption spending would increase. d. Investment spending would increase. e. Total output would decrease.
Assume that in 2002 the nominal GDP was $350 billion and in 2003 it was $375 billion. On the basis of this information, we:
A. cannot make a meaningful comparison of the economy's performance in 2002 relative to 2003. B. can conclude that the economy was achieving real economic growth. C. can conclude that real GDP was higher in 2002 than in 2003. D. can conclude that real GDP was lower in 2002 than in 2003.
A large open economy
A. lends or borrows enough in the international capital market to influence the world real interest rate. B. has a larger population than all small open economies. C. dominates world trade in one or more products. D. is physically larger than all small open economies.