According to the early Keynesians,
a. the money demand function was unstable; the interest elasticity of money demand was extremely high; and, as a consequence, changes in the quantity of money did not have important predictable effects on the level of economic activity.
b. the money demand function was stable; the interest elasticity of money demand was low; and, as a consequence, changes in the quantity of money did not have important predictable effects on the level of economic activity.
c. the money demand function was unstable; the interest elasticity of money demand was low; and, therefore, changes in the quantity of money did not have important effects on the level of economic activity.
d. the money demand function was stable; the interest elasticity of money demand was high; and, therefore, changes in the quantity of money did have important effects on the level of economic activity.
A
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The statement that "increases in the tax on gasoline increase the price of gasoline" is an example of a
A) marginal statement. B) normative statement. C) rational-decision statement. D) macroeconomic statement. E) positive statement.
Which of the following is true for a firm operating under perfect competition, monopolistic competition, and monopoly?
a. Firms earn positive economic profits in the long run. b. Firms earn zero economic profits in the long run. c. Profits are maximized when marginal cost equals marginal revenue. d. Price equals marginal cost.