When policy makers take actions in response to or in anticipation of some change in the overall economy, there is
A) passive policy making. B) rationalization policy making.
C) rational expectations policy making. D) active policy making.
D
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According to the equation of exchange, if nominal GDP equals $6 trillion and the money supply equals $1 trillion, the velocity of money: a. must be 6
b. must be 1/6. c. must be 6 trillion. d. must be 1/6 trillion. e. cannot be determined unless we know the price level.
Discuss the conditions that define perfect competition
Factor prices, returns from alternative activities, technology, number of firms, producer expectations, and natural events are often termed:
A) demand determinants. B) demand quantities. C) supply prices. D) supply shifters.
Which of the following is true for a perfectly competitive market in long-run equilibrium?
A. There is no incentive for new firms to enter the market. B. Each firm in the market earns zero economic profit. C. There is no incentive for existing firms to leave the market. D. All of these are correct.