Suppose we are at a long-run equilibrium point in an AD-AS model. Then the money supply increases. In the short run, is there any difference between what happens in the simple quantity theory of money (SQTM) version and the monetarist version of the model?
A) There is no difference.
B) In the SQTM version, the price level rises; in the monetarist version, it does not.
C) In the monetarist version, the price level falls; in the SQTM version, it does not.
D) In the monetarist version, the Real GDP rises; in the SQTM version, it does not.
E) In the SQTM version, Real GDP falls; in the monetarist version, it does not.
D
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The impact of an increase in the wage rate on labor supply will be represented by ________, assuming all else equal
A) a rightward shift of the labor supply curve. B) a leftward shift of the labor supply curve. C) an upward movement along the labor supply curve. D) a downward movement along the labor supply curve.
A number of economic historians have attempted to determine whether US railroads were built ahead of demand. Which of the following statements presents accurate information about the findings of this area of research?
a. Fogel and Mercer found that post-bellum transcontinental had relatively low initial profit rates that grew over time. b. According to Fishlow, antebellum railroads were built ahead of demand, but post-bellum transcontinentals were not. c. Fishlow finds that government aid to antebellum railroads was generous and widespread. d. Mercer finds that rates of return on all post-bellum transcontinental railroads were less than rates on alternative investments.