According to classical economists,
a. prices are rigid.
b. both V and Q are variable for an economy in short-run equilibrium.
c. changes in M cause changes in V.
d. the velocity of money is constant.
d
You might also like to view...
The saving schedule shows the relationship of saving of households to the level of
A. disposable income. B. consumption. C. the average propensity to save. D. investment.
Aggregate demand ________ if the expected inflation rate increases because ________
A) increases; people expect to receive cost of living raises as the inflation begins B) does not change; inflation does not affect the aggregate demand curve C) increases; people want to make purchases now before the price of goods and services begin to increase D) decreases; people wait for the exchange rates to change before making purchases E) decreases; people want to wait for the price of goods and services begin to decrease
If the market in the figure above is a profit-maximizing single-price monopoly, the producer surplus is the area ________
A) ABH B) BFGH C) ACG D) BDEH E) ACE
Assume that labor is the only variable input and that an additional input of labor increases total output from 72 to 78 units. If the product sells for $6 per unit in a perfectly competitive market, then the marginal revenue product of this additional worker is:
a. $78. b. $72. c. $36. d. $39. e. $6.