A closed economy is one in which
A) investment spending is zero.
B) government spending is zero.
C) there are no imports or exports.
D) demand equals supply in every market.
C
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Stock market price quotations are an example of money serving as a
A) store of value. B) medium of exchange. C) unit of accounting. D) economic value.
What are market failures? Discuss examples of market failures. What can government do to improve the results of market failures?
In contrast with nominal GDP, real GDP refers to nominal GDP:
a. minus exports. b. minus personal income taxes. c. corrected for price changes. d. corrected for depreciation.
The aggregate demand-aggregate supply model shows that closing an expansionary gap involves deflation and closing a recessionary gap involves inflation.
a. true b. false