Over the long run, a surge in aggregate demand from a neoclassical perspective will most likely result in:
a. a rise in level of output
b. an increase in price level
c. downward pressure on the price level
d. pressure for a lower level of inflation
b. an increase in price level
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What is the difference between goods and services?
What will be an ideal response?
The quantity equation makes the demand for money depend on
A) the unemployment rate and the level of interest rates. B) the inflation rate and the unemployment rate. C) interest rates and the unemployment rate. D) None of these.
In reality, the profit-maximization rule to set marginal revenue equal to marginal cost, is a(n) ________ rather than a(n) ________.
A) operational rule; target B) obtainable goal; operational rule C) operational rule; goal D) target; operational rule
Since the 1930s, average U.S. tariff rates on imports have
a. risen dramatically b. risen slowly c. declined dramatically d. declined slowly e. remained about the same