The quantity theory of money implies that the price level will be stable (no inflation or deflation) when the growth rate of the money supply equals
A) 0.
B) the growth rate of the price level.
C) the growth rate of the velocity of money.
D) the growth rate of real GDP.
Answer: D
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A Pareto optimum is a point that
A) a malevolent dictator would choose. B) a cooperative coalition of some altruistic consumers would choose. C) a cooperative coalition of some socially responsible firms would choose. D) a social planner would choose.
If the price of coffee is $2 a pound, how much is Juan willing to supply per year?
a. 10 pounds
b. 30 pounds
c. 50 pounds
d. 70 pounds
Suppose that the inverse demand for a downstream firm is P = 150 ? Q. Its upstream division produces a critical input with costs of CU(Qd) = 5(Qd)2. The downstream firm's cost is Cd(Q) = 10Q. When there is no external market for the downstream firm's critical input, the downstream firm should produce:
A. 14 units. B. 11.67 units. C. 12.5 units. D. 15 units.
A monetary aggregate is
A. coin and paper currency. B. paper currency. C. a measure of the quantity of money in the economy. D. coin.