Classical economists believe that
A) money is neutral.
B) an increase in the real money supply affects output.
C) inflation is determined by wage growth.
D) monetary policy should be used to combat recessions.
A
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Which of the following statements correctly differentiates between a model and a hypothesis?
A) Testing a hypothesis does not require data, whereas testing a model requires data. B) A model is a simplified representation of reality, whereas a hypothesis is a model's predictions. C) A hypothesis can be used to make predictions for the future, whereas a model can only explain the past. D) Testing a model requires data, whereas testing a hypothesis does not require data.
The foreign exchange rate is defined as the
A) equal to the amount of the current account deficit. B) equal to the amount of the capital account deficit. C) volume of the world currencies traded. D) rate or the speed with which the currencies of the worlds are traded. E) price at which one currency exchanges for another.
The price elasticity of supply when the supply curve is Q = 5 is
A) 5. B) perfectly inelastic. C) perfectly elastic. D) Cannot be calculated from the information provided.
In the above table, if the marginal revenue product is $18, how many workers will the profit maximizing monopsonist hire?
A) 2 B) 3 C) 4 D) 5