When there is inflation in the economy, it implies that the:
A. Price index is rising and the purchasing power of money is also rising
B. Price index is falling and the purchasing power of money is also falling
C. Price index is falling and the purchasing power of money is rising
D. Price index is rising and the purchasing power of money is falling
D. Price index is rising and the purchasing power of money is falling
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A major contribution of the Solow model is its ________
A) insight into what distinguishes rich economies from poor economies B) explanation of why productivity grows over time C) demonstration that the key to sustained growth is a high level of saving D) encouragement of policies to limit population growth
Think of the quantity theory of money: If V = 5, P = 100, and Q = 10, then M is
a. 20 b. 10 c. 500 d. 1,000 e. 200