Refer to Figure 5-3. The efficient output level is
A) Qo. B) Qo - Qm. C) Qm. D) Qn.
D
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Other things the same, if the Fed increases the quantity of money, the supply of money curve shifts
A) rightward and the nominal interest rate decreases. B) leftward and the real interest rate increases. C) leftward and the nominal interest rate increases. D) leftward and the nominal interest rate decreases. E) rightward and the real interest rate increases.
Two countries, Blue Violet and Sweet Pansy, produce only two goods: teapots and coffeepots. The table above gives their production possibilities. With specialization and trade, Sweet Pansy produces ________ and Blue Violet produces ________
A) 150 coffeepots, 150 teapots B) 150 teapots, 75 coffeepots C) 150 teapots and 150 coffeepots, nothing D) 100 teapots and 25 coffeepots, 100 teapots and 50 coffeepots
The value of an item expressed in today's dollars is known as
A) inflation. B) deflation. C) the nominal value. D) the real value.
The Malthusian population theory
A. was eventually dismissed for its pessimism and failure to take into account technological advances in agriculture and food production. B. failed because contrary to Malthus' argument, agricultural production is not subject to diminishing returns. C. was not borne out in low-income countries because "population checks" (war, famine, etc.) kept population growth down while real GDP growth increased. D. states that the root cause of underdevelopment is unchecked population growth.