The quantity theory of money along with the assumption of a constant velocity can explain which of the following?
A. At a given level of money growth, the higher the level of real growth the lower the level of inflation will be.
B. At a given level of money growth, the higher the level of real growth the higher the level of inflation will be.
C. If real growth equals money growth, the price level is falling.
D. If real growth is higher than money growth, the price level must be rising.
Answer: A
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Refer to the table above. If consumption expenditure increases to $200,000 in the next year, ________, all other variables remaining unchanged
A) gross domestic product will fall to $367,000 B) gross domestic product will increase to $367,000 C) gross domestic product will increase to $400,000 D) gross domestic product will fall to $400,000
The above figure shows Dana's marginal benefit curve for ice cream. If the price of ice cream is $2 per gallon, then the gallon that gives Dana exactly zero consumer surplus is
A) the 8th gallon. B) the 12th gallon. C) the 16th gallon. D) the 20th gallon.
An increasing-cost industry is so named because of the positive slope of which curve?
A) Each firm's short-run average cost curve B) Each firm's short-run marginal cost curve C) Each firm's long-run average cost curve D) Each firm's long-run marginal cost curve E) The industry's long-run supply curve
When the housing bubble popped, the effect of the negative demand side shock and the negative supply side shock were the same on:
A. output, causing it to definitely decrease. B. output, causing it to definitely increase. C. prices, causing them to definitely rise. D. prices, causing them to definitely fall.