Monetary neutrality means that a change in the money supply
a. does not change real GDP. Most economists think this is a good description of the economy in the short run and in the long run.
b. does not change real GDP. Most economists think this is a good description of the economy in the long run but not the short run.
c. does change real GDP. Most economists think this is a good description of the economy in the short-run and the long run.
d. does change real GDP. Most economists think this is a good description of the economy in the long run but not the short run.
b
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Pollution and depletion both occur because of poorly defined property rights
Indicate whether the statement is true or false
BHP Billiton is a Canadian company that owns mines in Canada that
A) produce nickel. After World War II, BHP Billiton began to compete with another Canadian firm, the International Nickel Company. This competition eventually ended International Nickel's monopoly in this market. B) produce bauxite, the mineral needed to produce aluminum. BHP Billiton began to mine bauxite after World War II. This competition eventually ended the Aluminum Company of America (ALCOA)'s monopoly in this market. C) produce coal. Until World War II, BHP Billiton had a monopoly on coal in Canada. D) produce diamonds.
Suppose a patent is granted for a product that has the linear demand curve P = a - b Q. The constant marginal cost of producing this product is $50 per unit, a unit sells for $150, and consumers purchase 100 units of the good at that price. If the monopoly is maximizing profit, b equals
A) 1. B) 1.5. C) 2. D) 2.5.
Consider a nation experiencing the relationship illustrated by the short-run Phillips curve. An increase in both unemployment and inflation in this nation over the next ten years can be explained by:
a. a downward movement along the short-run Phillips curve. b. a series of outward shifts of the short-run Phillips curve. c. an upward movement along the short-run Phillips curve. d. a series of inward shifts of the short-run Phillips curve. e. a complete change in the slope of the Phillips curve.