People will want to hold more money if the price level
a. or if the interest rate increases.
b. or if the interest rate decreases.
c. increases or if the interest rate decreases.
d. decreases or if the interest rate increases.
c
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The self-correcting tendency of the economy means that falling inflation eventually eliminates:
A. exogenous spending. B. recessionary gaps. C. expansionary gaps. D. unemployment.
Disguised unemployment refers to
a. workers who shirk their responsibilities and don't contribute to output b. unemployed people who don't admit they are unemployed c. workers whose output is valued at less than their wage d. unemployed people who pretend to be working e. none of the above
Compare and contrast cardinal utility and ordinal utility. Which concept is sufficient for ranking consumers' preferences? Why?
What will be an ideal response?
When the economy goes through ups and downs over time:
A. it affects the supply of labor. B. economists call this pattern the business cycle. C. it is not reflected by changes in GDP growth. D. All of these are true.