According to the quantity theory of money,
a) the quantity of money determines the long run equilibrium price level
b) the amount of money in the economy determines the long run quantity of output
c) money affects the aggregate supply curve, while the aggregate demand curve determines real output
d) the money supply only affects the economy in the long run, not in the short run
e) the full-capacity level of output determines the supply of money needed in the economy
a) the quantity of money determines the long run equilibrium price level
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Which of the following statements is TRUE?
A) The presence of positive economic profit in a perfectly competitive market is consistent with the characteristics of a long-run competitive equilibrium. B) When firms in a perfectly competitive market incur economic losses, some will exit in the long run, thereby shifting the industry supply curve rightward. C) If a profit-maximizing firm in a perfectly competitive market is making an economic profit, then it must be producing at a level of output where price is greater than average total cost. D) If a profit-maximizing firm in a perfectly competitive market is incurring an economic loss, then it must be producing at a level of output where price is greater than average total cost.
If Irene can make either four chairs or one table in an hour and Greg can make either three chairs or two tables in an hour then
A) Irene has the absolute advantage in the production of chairs. B) Irene has the comparative advantage in the production of tables. C) Greg has the absolute advantage in the production of chairs. D) Greg has the comparative advantage in the production of chairs.