Which component of the quantity equation is assumed constant by the quantity theory of money?
A. the money supply
B. the velocity of money
C. the level of income
D. the price level
Answer: B. the velocity of money
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You decide to spend Thanksgiving with your grandparents instead of going to Las Vegas with 20 of your closest friends. Losing the chance to be with your friends is the ________ cost of spending Thanksgiving with your grandparents
A) explicit B) implicit C) deferred D) accrued
The simplest calculation of the growth rate of multifactor productivity starts with the growth rate of real GDP and then
A) subtracts the growth rate of labor. B) subtracts the growth rate of capital. C) subtracts the growth rate of labor and some fraction of the growth rate of the capital-labor ratio. D) adds the growth rate of labor and then subtracts the depreciation and population growth rates.
Technological change that increases the marginal productivity of labor in the classical model would cause
a. labor demand, output and the price level to rise. b. labor demand to fall, the price level to fall, and output to rise. d. labor demand, output and employment to rise. c. output to rise but labor demand to fall.
Among the evidence that people do not always make choices that reflect sensible preferences are examples of:
A. choice reversals. B. conformance to the principle of revealed preference. C. compliance with the Ranking Principle. D. All of these provide evidence that people do not always make choices that reflect sensible preferences.