Which of the following is correct? Inflation
a. impedes financial markets in their role of allocating resources.
b. reduces the purchasing power of the average consumer.
c. generally increases after-tax real interest rates.
d. is most costly when anticipated.
a
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Shocks to long-run aggregate supply can be a source of business fluctuations ________
A) only in real business cycle models B) only in new Keynesian models C) in both real business cycle and new Keynesian models D) only if the money supply rises
The international trade of goods within the same industry is called
a. inter-industry trade. b. intra-industry trade. c. splitting up the value chain. c. splitting up the supply chain.
Consider the statement, "The number of hours you slept the night before a test affects your test grade." In this statement
A. both the number of hours slept and test grade are independent variables. B. the number of hours slept is the independent variable and test grade is the dependent variable. C. both the number of hours slept and test grade are dependent variables. D. the number of hours slept is the dependent variable and test grade is the independent variable.
The equation of exchange is a formula indicating that the number of monetary units times
A. nominal Gross Domestic Product (GDP) is identical to the price level times the number of times each monetary unit is spent on final goods and services. B. real Gross Domestic Product (GDP) is identical to the price level times the number of times each monetary unit is spent on final goods and services. C. the number of times each monetary unit is spent on final goods and services is identical to the price level times real Gross Domestic Product (GDP). D. the price level is identical to the number of times each monetary unit is spent on final goods and services times real Gross Domestic Product (GDP).