Which of the following is true of entrepreneurship?
a. Entrepreneurial discovery is an important source of economic growth and higher living standards.
b. The role of the entrepreneur is not very important and that is why it is generally not included in economic models.
c. The role of entrepreneurial discovery could be easily integrated into economic models, but nonetheless economists choose not to do so.
d. Economic models are able to capture fully the important role of the entrepreneur in the market process.
A
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In the above figure, a movement from point B to point C could be explained by
A) an increase in the price level. B) a decrease in the quantity of money in circulation. C) increased government spending. D) the real-balance effect.
Figure 14-4
In , an unanticipated shift to a more restrictive monetary policy will shift
a.
AD to the right and temporarily increase real GDP.
b.
AD to the left and temporarily reduce real GDP.
c.
AD to the right and SRAS to the left and lead to higher prices (inflation).
d.
both AD and SRAS to the right and lead to an increase in real GDP.
The self-correcting tendency of the economy means that falling inflation eventually eliminates:
A. exogenous spending. B. recessionary gaps. C. expansionary gaps. D. unemployment.
All else equal, an increase in government borrowing is likely to cause a(n):
A) leftward shift of the credit demand curve. B) rightward shift of the credit demand curve. C) downward movement along the credit demand curve. D) upward movement along the credit demand curve.