The idea that aggregate price levels do not affect real outcomes in the economy is called the:
A. neutrality of money.
B. aggregate price theory.
C. neutrality of prices.
D. real output theory.
A. neutrality of money.
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When is debt financing most likely to harm future generations of Americans?
a. When the debt is held by domestic investors. b. Any time the debt is held by foreign investors. c. When the debt is held by foreign investors and the funds are channeled into productive investment projects. d. When the debt is held by foreign investors and the funds are used to finance either current consumption or unproductive investments.
Which of the following is not a reason why government agencies subsidize basic research?
a. The private market devotes too few resources to basic research. b. The general knowledge developed through basic research can be used without charge. c. The social benefit of additional knowledge is perceived to be greater than the cost of the subsidies. d. The government wants to attract the brightest researchers away from private research firms.
If C = 900 + 0.3Y, then autonomous expenditure is:
(a) 900. (b) 300. (c) 1200. (d) None of the above.
A market situation in which a large number of firms produce similar but not identical products is
A) a collusive market structure. B) competitive monopoly. C) a homogeneous market. D) monopolistic competition.