This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Use the figure above to answer this question. At a price level of 90 A) people will be forced to ... (Read 56 times)

dmcintosh

  • Hero Member
  • *****
  • Posts: 517
on: Jun 29, 2018
Use the figure above to answer this question. At a price level of 90
 
  A) people will be forced to cut consumption so that aggregate demand will decrease.
  B) the aggregate quantity demanded exceeds real GDP and inventories will decrease.
  C) inventories increase and firms will increase production.
  D) the aggregate quantity demanded exceeds real GDP, inventories increase and the price level will rise.

Question 2

Suppose that the nominal quantity of money is 200 billion and the value of nominal GDP is 1 trillion. It must be the case that
 
  A) the economy is suffering from inflation.
  B) the average price paid for a typical good is 5.
  C) there will be a shortage of money balances in the economy.
  D) the velocity of circulation is 5.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

elyse44

  • Sr. Member
  • ****
  • Posts: 319
Reply #1 on: Jun 29, 2018
Answer to Question 1

B

Answer to Question 2

D


dmcintosh

  • Member
  • Posts: 517
Reply 2 on: Jun 29, 2018
:D TYSM

elyse44

  • Member
  • Posts: 319
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

« previous next »
 

Did you know?

Lower drug doses for elderly patients should be used first, with titrations of the dose as tolerated to prevent unwanted drug-related pharmacodynamic effects.

Did you know?

GI conditions that will keep you out of the U.S. armed services include ulcers, varices, fistulas, esophagitis, gastritis, congenital abnormalities, inflammatory bowel disease, enteritis, colitis, proctitis, duodenal diverticula, malabsorption syndromes, hepatitis, cirrhosis, cysts, abscesses, pancreatitis, polyps, certain hemorrhoids, splenomegaly, hernias, recent abdominal surgery, GI bypass or stomach stapling, and artificial GI openings.

Did you know?

Your heart beats over 36 million times a year.

Did you know?

Before a vaccine is licensed in the USA, the Food and Drug Administration (FDA) reviews it for safety and effectiveness. The CDC then reviews all studies again, as well as the American Academy of Pediatrics and the American Academy of Family Physicians. Every lot of vaccine is tested before administration to the public, and the FDA regularly inspects vaccine manufacturers' facilities.

Did you know?

About 3% of all pregnant women will give birth to twins, which is an increase in rate of nearly 60% since the early 1980s.

Comparison of the level of skin damage as a result of the three different degrees of burns. Comparison of the level of skin damage as a result of the three different degrees of burns.
In this cartoon, Boss Tweed welcomes cholera—a skeletal figure of death carrying a handbag from “Asi In this cartoon, Boss Tweed welcomes cholera—a skeletal figure of death carrying a handbag from “Asi
The energy set-point view that is the basis of many people’s thinking about hunger and eating. The energy set-point view that is the basis of many people’s thinking about hunger and eating.
The developed countries must reduce the level of greenhouse gas emissions The developed countries must reduce the level of greenhouse gas emissions
A Drug’s Plateau Level A Drug’s Plateau Level
I need help fill up the chart attached phtoto long question I need help fill up the chart attached phtoto long question
Video: Sperm Formation

For a complete list of videos, visit our video library