According to classical macroeconomic theory, nominal variables, but not real variables, are affected by changes in the
a) supply schedule.
b) labor supply.
c) money supply.
d) aggregate supply.
Answer: c) money supply
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Ron's Hamburger Joint is the only restaurant in town. The above figure represents Ron's cost, demand, and marginal revenue curves. Ron operates as a single-price monopoly
a) How many hamburgers does Ron produce? b) What price does Ron charge for a hamburger? c) What is Ron's total revenue? d) What is his total cost? e) What is Ron's economic profit?
Almost every time that there has been an inverted yield curve, what took place within one year?
A) recession B) rising inflation C) financial crisis D) higher bond yields
This graph shows what causes
A. cost-push inflation.
B. demand-pull inflation.
C. neither cost-push nor demand-pull inflation.
Higher interest rates and, therefore, a decrease in investment spending are most likely to be caused by which policy mix?
A. Deficit reduction and expansionary monetary policy B. Larger deficits and contractionary monetary policy C. Larger deficits and expansionary monetary policy D. Deficit reduction and contractionary monetary policy