Economists need different models of the economy because:
A.
The economy behaves differently depending on how much time has passed after a demand shock
B.
We need a different model to analyze a positive demand shock than we need to analyze a negative demand shock
C.
The way economic performance is measured of changes over time
D.
Prices tend to be less flexible over time
A.
The economy behaves differently depending on how much time has passed after a demand shock
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Cost-plus pricing would be consistent with selecting the profit-maximizing price when
A) the demand for the firm's product is unit elastic. B) consumers value the product beyond its marginal cost. C) a firm has no difficulty estimating its demand curve. D) it results in a price that causes quantity sold to be where marginal revenue equals marginal cost.
Which of the following is an example of an "unconventional monetary policy" by a central bank?
A) The purchase of specific categories of assets with new money. B) The sale of long-term government bonds for foreign exchange. C) the purchase of long-term government bonds using foreign exchange. D) raising reserve requirements by commercial banks. E) selling gold reserves.
Per capita income in China is approximately ________% of the U.S. level
A) 17 B) 80 C) 40 D) 5
GDP is adjusted to reflect changes in the quality of the environment such as changes in air and water quality
a. True b. False Indicate whether the statement is true or false