You hear an economist state the following: "The increase in the money supply will causes price to rise in the long run and will have no effect on output or any other real factors.". This economist is expressing the principle of _____
Fill in the blank(s) with correct word
money neutrality
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An example of a fiscal stimulus is
A) increasing the quantity of money. B) lowering the interest rate. C) decreasing government expenditure. D) decreasing needs-tested spending. E) cutting taxes.
Refer to Figure 15-4. What is the profit-maximizing/loss-minimizing output level?
A) 600 units B) 800 units C) 940 units D) 1,160 units
The structural unemployment rate is 1.3 percent, the frictional unemployment rate is 2.1 percent, and the economy's current unemployment rate is 4.9 percent. The economy is in
A) a recessionary gap producing less than Natural Real GDP. B) an inflationary gap producing more than Natural Real GDP. C) long-run equilibrium. D) an inflationary gap producing Natural Real GDP. E) a recessionary gap producing more than Natural Real GDP.
In the early 2000s, Chinese officials indicted members of a forgery syndicate that sold several hundred diplomas to high school graduates who needed the diplomas to take employment tests. This situation, where having the certificate of knowledge is more important than the knowledge itself, is known as:
A. the brain drain. B. human capital. C. certification. D. credentialism.