If nominal GDP is $10 trillion, and the money supply is $2 trillion, velocity is
A) 0.2.
B) 5.
C) 10.
D) 20.
B
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At a long-run macroeconomic equilibrium, real GDP is always equal to potential GDP
Indicate whether the statement is true or false
Draw a graph showing the typical competitive firm losing money but continuing to operate. Explain why the firm continues to operate rather than shut down.
What will be an ideal response?
Most economists support the idea of peak-load pricing on the grounds of
a. fairness in income distribution. b. efficiency in input usage. c. equality of opportunity. d. efficiency in output allocation.
Offering contributors private goods such as coffee mugs, books, or magazine subscriptions will ________ the free-rider problem and lead to a ________ level of contribution to the public good.
A. reduce; smaller B. reduce; larger C. increase; smaller D. increase; larger