If the annual inflation rate in an economy is positive, the purchasing power of a dollar kept in a bank:
A) will decrease over time.
B) will remain the same over time.
C) will increase over time.
D) can increase or decrease depending on the economic growth rate.
A
Economics
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In a model with money neutrality, how much should the money supply be increased to obtain a 1% increase in real output?
A) -1% B) between 0 and 1% C) 1% D) It cannot be done.
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Along a society's production possibilities frontier,
a. the level of technology is changing b. more of one good can be produced without giving up some of the other good c. resources are not being fully utilized d. available resources are being used efficiently e. there is productive inefficiency in the economy
Economics