In the value added approach to calculating GDP, counting both the intermediate good and the final product would understate the contribution to GDP
Indicate whether the statement is true or false
FALSE
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A change that increases the real money supply relative to real money demand causes
A) the LM curve to shift down and to the right. B) the LM curve to shift up and to the left. C) the IS curve to shift down and to the left. D) the IS curve to shift up and to the right.
During the first three years of a recovery from a recession, productivity
a. usually rises relatively rapidly. b. falls slowly. c. is quite puzzling since it is usually unpredictable with respect to the directional change. d. usually remains constant.
The fact that monopolistically competitive firms charge a price that exceeds marginal cost is responsible for the
a. business-stealing externality that is observed in monopolistically competitive markets. b. product-variety externality that is observed in monopolistically competitive markets. c. inefficiencies of the long-term losses earned by monopolistically competitive firms. d. persistence of positive profits into the long run for monopolistically competitive firms.
Structural stagnationists argue that unconventional monetary policy tools were necessary to restore order in the banking system.
Answer the following statement true (T) or false (F)