In the equation of exchange, velocity of money increases when
A. Y increases without any changes in P and M.
B. Y falls without any changes in P.
C. M increases without any changes in P and Y.
D. P falls without any changes in Y and M.
Answer: A
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The above figure shows the market for neckties after the government has imposed a tax. How much government revenue is generated by the tax?
A) $1,000.00 per month B) $800.00 per month C) $500.00 per month D) $400.00 per month
The labor supply curve reflects how
a. workers' decisions about the labor-leisure tradeoff respond to a change in the wage. b. workers' decisions about the opportunity cost of labor respond to a change in the quantity of labor supplied. c. firms' decisions about the labor-leisure tradeoff respond to the quantity of labor demanded. d. firms' decisions about how the quantity of labor they hire respond to changes in their opportunities to earn profits.
Which of the following was not a lesson from the 2007–2009 financial crisis?
A. Regulatory failures were the result of weaknesses across the regulatory structure. B. The financial system operated with too much leverage. C. The business cycle no longer applies to economic analysis. D. Monetary policy alone may not be sufficient to stabilize aggregate demand.
Related to the Economics in Practice on page 3: According to the Economics in Practice, due to the opportunity cost differential, one would expect ________ children at school when the rains have been plentiful in rural India, and ________ children at school when rural India is suffering from a drought.
A. fewer; more B. no; all C. the same number of; the same number of D. more; fewer