If Money Growth and Inflation Were Strongly Correlated in International

question 24

Multiple Choice

If money growth and inflation were strongly correlated in international data, the economist would become more ___________ in a theory linking the two.

• A) doubtful.
• B) confident.
• C) anxious.
• D) concerned.

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Definitions:

Price of Labor

The wage rate paid to employees, essentially the cost of labor to employers.

AVC Curve

A graph that shows the average variable costs of production at different levels of output.

Variable Resource

An input or factor of production whose quantity can be changed easily by a firm as its output level changes.

Total Variable Costs

The costs that vary directly with the level of production or output.