The average percentage markup in the economy
a. is greater, the more competitive are market conditions
b. is greater, the less competitive are market conditions
c. is unaffected by the competitive conditions of the economy
d. tends to be highly unstable from year to year
e. tends to be stable from year to year, ensuring that the price level is stable from year to year
B
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All else equal, if autonomous consumption ________, the value of the multiplier remains constant
A) increases B) decreases C) remains constant D) all of the above
A country that is borrowing more from the rest of the world than it is lending is called a
A) net debtor. B) net loaner country. C) net lender. D) net borrower. E) net creditor.
If real GDP increases over time, the cost of living will
A) always remain constant. B) always decrease. C) always increase. D) either remain constant or increase. E) More information is needed to determine how the cost of living changes.
Which of the following is NOT an inference of the rational expectations hypothesis?
A. Government policy actions that are anticipated have no real effects in the short run. B. Government policy actions have no real effects in the short run unless the actions are unanticipated. C. Government policy actions have no real effects in the long run. D. Government policy actions that are unanticipated have no monetary effects in the short run.