The level of output determined by the intersection of the short-run aggregate supply curve and the aggregate demand curve
A) may be above, below, or equal to full-employment output.
B) is always above full-employment output.
C) is always below full-employment output.
D) always corresponds to full-employment output.
A
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The assumption of rational self-interest means that economic decision makers
a. have no concern for the welfare of others b. consider the welfare of others to be more important than their own happiness c. know with certainty which choice will have the best result d. make reasonable decisions based on their expectations of results e. do not make incorrect decisions or bad choices
Suppose workers become pessimistic about their future employment, which causes them to save more and spend less. If the economy is on the intermediate range of the aggregate supply curve, then:
a. both real GDP and the price level will fall. b. real GDP will fall and the price level will rise. c. real GDP will rise and the price level will fall. d. real GDP and the price level will rise.
Many economists believe that savings accounts should be added to M1 because they
a. are larger in size than conventional checking accounts. b. pay larger interest than checking accounts. c. can be transferred quickly into checkable accounts. d. are also insured by the federal government.
Exponential smoothing is a forecasting method where the weights on the lagged dependent variable decline to zero exponentially.
Answer the following statement true (T) or false (F)