The French economist Jean-Baptiste Say transformed the equality of total output and total spending into a law that can be expressed as follows:
A. Unemployment is not possible in the short run.
B. Demand and supply are never equal.
C. Supply creates its own demand.
D. Demand creates its own supply.
Answer: C
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If income in the United States rises relative to income in Japan, the yen should appreciate against the dollar, ceteris paribus.
Answer the following statement true (T) or false (F)
The economy is in both a short- and long-run equilibrium if:
A. the long-run aggregate supply curve is at potential output. B. current inflation equals expected inflation and current output equals potential output. C. the aggregate demand curve intersects the short-run aggregate supply curve. D. the short-run aggregate supply curve intersects the long-run aggregate supply curve at potential output.
Which of the following is true?
A) Opportunity costs are the same as explicit costs. B) A firm's net income is the same as its accounting profit. C) If a firm's accounting profits are positive, its economic profits must also be positive. D) A firm's accounting profit is equal to its economic profit.
You are a collector of antique coins. You purchase a silver dollar minted in 1898 . Is this sale included in GDP for the current year?
a. Yes, provided the coin is in mint condition. b. No, it is not. c. No, unless the coin has been in circulation. d. Yes, it is. e. Only if it is part of the current money supply.