The change in total planned real expenditures resulting from a change in the real value of money balances when the price level changes, all other things held constant, is
A) the real-balance effect.
B) the interest rate effect.
C) the open economy effect.
D) demand side inflation.
A
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With respect to economic freedom, which of the following is TRUE?
A) Three out of four people live in nations with governments that grant residents high degrees of economic freedom. B) About three dozen nations with governments unwilling to grant much in the way of economic freedom are home to two-thirds of the world's population. Even so, these countries produce over 50 percent of the world's output. C) Where governments do not grant residents a high degree of economic freedom, economic growth rates tend to be above the annual average for the world's nations. D) As economic freedom increases, so does a nation's prospects for economic growth.
A recessionary gap:
A. is of little consequence in a capitalist economy. B. represents actual physical output lost. C. implies an equilibrium level of output less than the full-employment level. D. will automatically close, according to the Keynesian model.
In a situation of free trade,
A. countries with comparative advantage will export more than countries with comparative disadvantage import. B. the total quantity of an item exported will be greater than the total quantity imported. C. importing countries will always produce some good, so that total quantity imported is less than total quantity exported. D. the total quantity of an item exported will equal the total quantity imported.
Modest shifts of the market marginal cost curve will have no impact on the production decision of a monopolistically competitive firm.
Answer the following statement true (T) or false (F)