A monetary policy that reduces both real and nominal income:
A. cannot be expansionary or contractionary.
B. must be contractionary.
C. must be expansionary.
D. could be expansionary or contractionary.
Answer: B
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Although GDP is not the same as economic well-being, high levels of GDP are positively correlated with all of the following except:
A. longer life expectancies. B. higher rates of infant mortality. C. higher material standards of living. D. higher rates of literacy.
Use the following statements to answer this question:
I. If the extent of a market is broader, it is less likely that firms in the market can influence the market price. II. In determining whether two different products belong to the same market, it is necessary to know whether the two products can be used as substitutes for each other. A) I and II are both false. B) I is false, and II is true. C) I is true, and II is false. D) I and II are both true.
Valerie prefers A to B and she prefers B to C. If Valerie's preferences are transitive, then she prefers A to C
a. True b. False Indicate whether the statement is true or false
Political business cycles are economic fluctuations that occur when discretionary policy is manipulated for public interest
Indicate whether the statement is true or false