In reality, AD rarely ________; however, the economy performs as though it does when it ________
A) decreases; fluctuates with potential GDP
B) increases; decreases at a pace much slower than potential GDP
C) stagnates; increases at a pace much faster than potential GDP
D) decreases; increases at a pace much slower than potential GDP
E) decreases; increases at a pace much faster than potential GDP
D
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Suppose an economy's money supply is fixed at $4,000 and its nominal GDP is $800,000. Calculate the velocity of money
What will be an ideal response?
Examples of comparative advantage show how trade between two countries can make each better off. Compared to their pre-trade positions, trade makes both countries better off because in each country
A) total employment is greater. B) total welfare is greater. C) total consumption of goods is greater. D) wages are higher.