If the economy is currently in equilibrium at a level of GDP that is below potential GDP, which of the following would move the economy back to potential GDP?
A) an increase in the value of the dollar relative to other currencies
B) a decrease in business confidence
C) an increase in wealth
D) an increase in interest rates
C
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In the loanable funds market which of the following is true? a. Borrowers represent supply and government represents demand. b. Borrowers represent supply and banks represent demand
c. Banks represent supply and savers represent demand. d. Savers represent supply and borrowers represent demand.
When a tax is imposed on a good, the result is always a shortage of the good
a. True b. False Indicate whether the statement is true or false
The inflation rate you are likely to hear on the nightly news is calculated from
a. the GDP deflator. b. the CPI. c. the Dow Jones Industrial Average. d. the unemployment rate.
The Canadian economy most closely approximates
What will be an ideal response?