Assume that the inflation rate in an economy is measured on the vertical axis and the annualized growth rate of money supply minus the annualized growth rate of real GDP is measured on the horizontal axis on a graph
If a curve is plotted to establish the relationship between both variables, the curve is likely to be:
A) vertical. B) upward sloping.
C) horizontal. D) downward sloping.
B
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Discuss the Corn Laws and their purpose
What will be an ideal response?
The loss associated with the fact that at the profit-maximizing quantity consumers value the goods more than it cost to produce them is called
A) deadweight loss. B) comparative loss. C) Lerner Loss. D) Consumer Value Loss.
The full-employment rate of output can
A. be surpassed only when firms are not yet producing at full capacity. B. not be surpassed in either the short run or the long run. C. be surpassed in the long run only if input prices are flexible. D. be surpassed only in the short run.
If the price of Pepsi increases, then there will be ________ of Pepsi.
A. a decrease in the supply B. a decrease in the quantity supplied C. an increase in the supply D. an increase in the quantity supplied