According to Keynes, money wages
a. would adjust in the short run in order to maintain full-employment.
b. are inflexible in the short run are cannot guarantee full-employment levels of output.
c. are inflexible and fall as the price level rises.
d. are more flexible downward than upward direction.
B
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Rick withdraws $500 from his savings account, keeps $100 as currency, and deposits $400 in his checking account
A. M1 increases by $400 and M2 decreases by $500. B. M1 does not change, but M2 decreases by $500. C. M1 does not change, but M2 decreases by $400. D. M1 increases by $500 and M2 does not change.
Use the following two statements to answer this question:
I. A growing firm's average cost of production will decline over time if output continually expands and economies of scale are present. II. A firm's average cost of production can decline over time if learning occurs as cumulative output increases. A) Both I and II are true. B) I is true, and II is false. C) I is false, and II is true. D) Both I and II are false.
If bagels and croissants are substitute goods, which of the following is likely to occur if the price of bagels has decreased?
A) The demand curve for bagels shifts to the right. B) A leftward movement along the bagel demand curve. C) The demand curve for croissants shifts to the right. D) The demand curve for croissants shifts to the left.
Are credit cards money? Explain.
What will be an ideal response?