If velocity does not change and if real GDP and the quantity of money grow at the same rate, then the price level
A) does not change and the inflation rate is zero.
B) falls and the inflation rate is negative.
C) rises and the inflation rate is negative.
D) falls and the inflation rate is positive.
E) rises and the inflation rate is positive.
A
Economics
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If the Fed were to announce that fighting inflation is not a high priority for the immediate future ________
A) households might expect higher inflation B) the short run aggregate supply would shift upwards C) firms might begin raising their prices to keep up with expected inflation D) all of the above E) none of the above
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The most basic concept of economics is
A) self-interest. B) scarcity. C) demand. D) rationality.
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