If real GDP grows at 3 percent a year, the quantity of money grows at 5 percent a year, and the velocity of circulation is constant, then the price level must be
A) increasing at 8 percent a year.
B) decreasing at 2 percent a year.
C) increasing at 15 percent a year.
D) increasing at 2 percent a year.
E) decreasing at 8 percent a year.
D
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Compare and contrast the effect of perfect competition to the effect of perfect price discrimination on: a) efficiency. b) consumer surplus. c) economic profit in the long run
What will be an ideal response?
Which of the following statements is true?
A. White test can be used to efficiently determine the presence of serial correlation in panel data. B. The t statistic is not an efficient test to determine serial correlation in panel data. C. Instrumental variables for both endogenous and exogenous variables are required for estimating simultaneous equation models concerned with panel data. D. 2SLS should be applied to simultaneous equation models with panel data only after removing the unobserved effects from the equations of interest.