Which of the following statements is FALSE?
A) Economists empirically test their models.
B) Economic models are not used to forecast.
C) An economic model should capture only the essential relationships that are sufficient to analyze the particular problem being studied.
D) Economic models relate to behavior rather than to individual thought processes.
B
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If we knew that nominal GDP was currently $7500 billion, and that current GDP in dollars of 1992 purchasing power was $5000 billion, what would we know about the GDP deflator?
A) It would be .667. B) It would be 150. C) Nothing until we had current information on the price level, such as consumer price index figures. D) Only that a dollar buys more currently than it bought in 1992. E) Only that a dollar currently buys less than it bought in 1992.
What is an entrepreneur?
What will be an ideal response?
What three sources of revenue finance the EU budget?
What will be an ideal response?
The slope of the LM curve has been shown to depend most crucially on the interest elasticity of
a. consumption. b. saving. c. money demand. d. investment.