Imagine two economies that are identical except that, for a long time, economy A has had a money supply of $1,000 billion while economy B has had a money supply of $1,500 billion. It follows that
a) the price level, but not real GDP is higher in country B.
b) real GDP and the price level are higher in country B.
c) real GDP, but not the price level, is higher in country B.
d) neither the price level or real GDP is higher in country B.
Ans: a) the price level, but not real GDP is higher in country B.
Economics
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a. The government orders a bank to close. b. States charter more banks than needed. c. The price of gold suddenly increases. d. More customers withdraw money than the bank has on hand.
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If the Slamdunkers can sell 5000 season tickets for $100 and 6000 season tickets only by lowering the price to $80, the demand for season tickets between the two prices is
A) elastic. B) inelastic. C) marginal. D) unit elastic.
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