According to the new classical system,
a. an anticipated change in aggregate demand will cause labor suppliers to make price forecast errors and will, therefore, affect output and employment.
b. anticipated changes in aggregate demand will not affect output and employment because labor suppliers have perfect information about the price level.
c. unanticipated changes in aggregate demand will shift both the aggregate demand schedule and the aggregate supply schedule.
d. both b and c.
e. None of the above
B
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From the equation of exchange, if both nominal income and the quantity of money (M) have doubled, while the price level (P) has decreased by 50 percent and velocity (V) remains constant, then real output (Y) ________
A) also doubles B) triples C) quadruples D) decreases by 50 percent E) none of the above
The internal rate of return of a project can be found by
A) discounting all cash flows at the cost of capital. B) averaging all cash inflows, and calculating the interest rate, which will make them equal to the average investment. C) calculating the interest rate, which will equate the present value of all cash inflows to the present value of all cash outflows. D) None of the above
According to the graph shown, if the government decides to restrict trade, a deadweight loss is created equal to area(s):
This graph demonstrates the domestic demand and supply for a good, as well as a quota and the world price
for that good.
A. F and H.
B. DFGH.
C. FGH.
D. G.
If Allan lives in Boston and decides to buy a pair of hockey skates from Canada for $100, and the Canadian he bought them from buys a baseball hat and jersey for $100 from Boston, then the U.S. next exports:
A. and net capital outflow are both zero. B. and net capital outflow both equal ?$100. C. is zero and net capital outflow is ?$100. D. equals ?$100 and net capital outflow is zero.