If the money supply in an economy equals $1,000 and nominal GDP equals $3,000 . then according to the equation of exchange, velocity of money:
a. equals 1/3
b. equals 3.
c. equals 3 million.
d. cannot be determined since we do not know anything about prices.
e. cannot be determined since we do not know anything about real GDP.
b
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Which of the following changes does NOT shift the long-run aggregate supply curve?
A) a decrease in the labor force B) a fall in the price level C) a rise in number of college graduates in the labor force D) a tax hike that reduces the capital stock
A monopolistically competitive firm
A) cannot make a positive economic profit in the long run because of entry. B) can make a positive economic profit in the long run because it sells a differentiated good. C) can make a positive economic profit in the long run because there are only a few firms in the industry. D) cannot make a positive economic profit in the long run because it sells a homogeneous good.