If the money supply grew by 6 percent and velocity fell by 2 percent, nominal GDP would:
a. fall by 4 percent

One factor which did not influence the levels of real output and employment in the classical system was the

a. stock of capital. b. level of technology. c. the price level. d. size of the labor force.

Which of the following is a problem that keeps people from privately solving externality problems?

a. Each party involved holds out for a better deal. b. The externality is large. c. Only problems with a sufficiently large number of parties can be solved. d. There is a lack of government intervention.