If Veronica withdraws $1,500 from her savings account and deposits it in her checking account, then M1 will ________ and M2 will ________
A) increase; decrease
B) increase; not change
C) not change; decrease
D) not change; not change
B
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Some economists argue that discrimination based on race and sex cannot lead to persistent wage differentials. What is their argument?
What will be an ideal response?
The long-run effect of an increase in the money supply when starting from full employment is to
A) increase real GDP only. B) increase the price level only. C) increase both real GDP and the price level. D) increase real GDP as the price level increases too.
Perfect price discrimination
a. increases profits to the firm. b. increases total surplus. c. decreases consumer surplus. d. All of the above are correct.
A farmer sells $25,000 worth of apples to individuals who take them home to eat, $50,000 worth of apples to a company that uses them all to produce cider, and $75,000 worth of apples to a grocery store that will sell them to households. How much of the farmer's sales will be included as apples in GDP?
a. $25,000 b. $150,000 c. $100,000 d. $125,000