The quantity theory of money and prices rests on the assumption that
A) the minimum wage is constant. B) the velocity of money is constant.
C) the nominal interest rate is constant. D) the foreign exchange rate is constant.
B
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Which of the following is not a reason why some production continues in households?
a. Some household production requires many specialized resources b. The opportunity cost of household production has decreased over time c. Household production avoids taxes d. There have been important technological advances in household production e. Some households prefer the ability to control production
In 2011, the imaginary nation of Maconia had a population of 8,200 and real GDP of 210,500 . Maconia had 5% growth in real GDP per person. In 2012 it had a population of 8,400 . To the nearest dollar what was real GDP in Maconia in 2012?
a. 216,815 b. 221,025 c. 226,416 d. None of the above is correct.