Under the gold standard,
A. no nation had control of its domestic monetary policy, and therefore no nation could control its aggregate demand.
B. the world’s commerce was at the mercy of gold discoveries.
C. discoveries of gold meant higher prices in the long run and higher real economic activity in the short run.
D. All of the above are correct.
Answer: D
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Greg's Ice Cream produces 1120 gallons of ice cream per day. Each employed works seven hours and has productivity of 20 gallons an hour. How many employees does Greg's employ?
a. 160 b. 56 c. 8 d. None of the above is correct.
Suppose Andrea is taking just two courses and is at a point inside her PPF of grades for those two courses. If Andrea changes her work habits then it is impossible for
A) either one of her grades to rise. B) both of her grades to rise. C) both of her grades to fall. D) either one of her grades to rise while the other grade remains constant. E) none of the above is impossible in this situation
Ellie is spending her entire income on goods X and Y. Her marginal utility from the last unit of X is 100 and the marginal utility from the last unit of Y that she consumes is 50. Ellie's utility is only maximized if
A. the prices of X and Y are the same. B. the price of good Y is twice that of good X. C. the price of good X is twice that of good Y. D. We cannot determine whether Ellie is maximizing her utility.
A reduction in the amount of unemployment
A) shifts the production possibilities frontier outward. B) moves the economy's point of production closer to the production possibilities frontier. C) moves the economy's point of production along the production possibilities frontier. D) moves the economy's point of production further away from the production possibilities frontier.