If a country was operating well below its long-run capacity (potential GDP), the initial impact of an unanticipated increase in the money supply would most likely result in an increase in
a. prices with little change in output.
b. output with little change in prices.
c. output and a decline in prices.
d. prices and a decline in output.
B
Economics
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In the long run, both monopolistically competitive and perfectly competitive firms attain
A) lowest cost production. B) positive economic profits. C) zero economic profits. D) productive efficiency.
Economics
Which of the following transactions could contribute to a British current account surplus? Discuss.a. A French firm sells defense equipment to the British government for 250 million pounds in bank deposits.b. Great Britain makes a gift of $500 million to the Iraqi government in the form of equipment to aid in reconstruction.
What will be an ideal response?
Economics