The value of money as a means of payment:
A. depends on whether the majority of M1 is in currency or demand deposits.
B. depends on the amount of money in the economy, among other things.
C. is fixed once relative prices are set.
D. is independent of changes in the amount of money in the economy.
Answer: B
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Peg's Manicure Manor did 4,000 sets of nails in 2015 and 4,500 sets of nails in 2016. The price of a set of nails was $20 in 2015 and $22 in 2016. If 2015 is the base year, Peg's contribution to nominal GDP in 2015 was ________ and to real GDP in 2015 was ________.
A. $80,000; $80,000 B. $80,000; $88,000 C. $88,000; $90,000 D. $80,000; $99,000
Cost-push inflation is
A) inflation caused by decreases in aggregate supply that generate an even larger decrease in aggregate demand. B) inflation caused by increases in aggregate demand that are not matched by increases in aggregate supply. C) inflation caused by increases in aggregate demand that generate an even larger increase in aggregate supply. D) inflation caused by decreases in aggregate supply that are not matched by decreases in aggregate demand.
Straker Industries estimated its short-run costs using a U-shaped average variable cost function of the formAVC = a + bQ + cQ2and obtained the following results. Total fixed cost (TFC) at Straker Industries is $1,000. 
At what level of output is average variable cost (AVC) at its minimum point for Straker Industries?
A. 7 B. 14 C. 0.14 D. 28 E. 4.7
The economy of Bananaland can be characterized by Equation 24.5.EQUATION 24.5:C = 2,000 + 0.75YdT = 200G = 400I = 500Refer to Equation 24.5. The equilibrium level of income in Bananaland is
A. 4,800. B. 5,600. C. 10,000. D. 11,000.