When comparing the velocity of M2 (V2), with the velocity of M1 (V1), the evidence suggests that V2 has been __________ and V1 has been __________ over time
A) relatively predictable; relatively predictable
B) relatively predictable; relatively unpredictable
C) relatively unpredictable; relatively predictable
D) relatively unpredictable; relatively unpredictable
B
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"Allocative efficiency requires that the maximum number of people have access to all of the goods and services that our economy produces." Is this statement true or false? Explain your answer
What will be an ideal response?
If price is above the equilibrium price, then there will be:
A. excess supply. B. neither excess supply nor excess demand. C. excess demand. D. both excess supply and excess demand.
During the late 1990s in the United States, aggregate demand rose sharply but the price level increased much more slowly. This might be because during this period, firms:
A. increased their markups in the face of higher aggregate demand, causing the short-run aggregate supply curve to be steeper. B. were reluctant to increase their markups in the face of higher aggregate demand, causing the short-run aggregate supply curve to be flatter. C. increased their markups in the face of higher aggregate demand, causing the short-run aggregate supply curve to be flatter. D. were reluctant to increase their markups in the face of higher aggregate demand, causing the short-run aggregate supply curve to be steeper.
Given the slope of a supply curve, if a demand curve becomes more price elastic:
A. the share of a tax consumers pay becomes smaller. B. the share of a tax consumers pay becomes greater. C. consumers pay the entire amount of a tax. D. There is not sufficient information.