In the aggregate expenditure model, which of the following variables is assumed to be independent of real GDP?
A. Profit
B. Saving
C. Investment
D. Consumption
C. Investment
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If a monopoly engages in rent seeking,
i. its average total cost curve is lower than otherwise. ii. it might or might not make an economic profit depending on how many other competitors also are rent seeking. iii. it necessarily incurs an economic loss. A) i only B) ii only C) iii only D) i and ii E) i and iii
In November 2008, the Fed began its first round of quantitative easing. In total, the Fed conducted ________ rounds of quantitative easing before ending the program in October 2014
A) 2 B) 3 C) 4 D) 5
There is concern among economists who favor free trade that some regional agreements may promise free trade, but actually act as a way for the countries within the regional agreement to try to ________ trade from anywhere else.
a. support b. encourage c. eliminate d. limit
Money's primary role in the economy comes from the benefits of lowering transactions costs and allowing specialization. This function of money is called
a. store of value b. unit of account. c. standard of deferred payment. d. medium of exchange.