Why doesn't the government print money in order to solve its debt problems?
Government could print more money, but this would lead to a highly inflationary economy, which would in turn deeply undermine public confidence in the government and the stability of the market.
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If a surplus exists in a market we know that the actual price is
a. above equilibrium price and quantity supplied is greater than quantity demanded. b. above equilibrium price and quantity demanded is greater than quantity supplied. c. below equilibrium price and quantity demanded is greater than quantity supplied. d. below equilibrium price and quantity supplied is greater than quantity demanded.
Under a constant growth rate of money rule of 5 percent in an economy in which Real GDP grows at an average rate of 5 percent and velocity is constant, the inflation rate is
A) 5 percent. B) -5 percent. C) 25 percent. D) -25 percent. E) constant at zero.
Assume that an economy has 50 workers, each of whom works 3000 hours per year. If labor productivity is $8, total output for this economy will be:
A. $150,000. B. $1,200,000. C. $750,000. D. $1,000,000.
When El Torito Restaurant is deciding how many waiters to hire for a holiday weekend, it is making a ________ decision
A) plant-size B) long-run C) short-run D) fixed-input