Inflation reduces the purchasing power of nominal income and increases the purchasing power of fixed income
a. True
b. False
Indicate whether the statement is true or false
False
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In perfect competition, restrictions on entry into an market
A) apply to both capital and labor. B) apply to labor but not to capital. C) apply to capital but not to labor. D) do not exist.
Which of the following sets legal reserve requirements?
a. Board of Governors b. District Federal Reserve Banks c. Federal Open Market Committee d. Federal Advisory Council e. Treasury Department
Figure 33.2 illustrates Lorenz curves for four different economies. For which economy would lower-income families receive the largest share of total income?
A. A. B. B. C. C. D. D.
Advocates of a passive policy approach argue that an active stabilization policy imposes troubling fluctuations in the price level and real GDP because it often takes a hold only after market forces have already returned the economy to its potential output level
Indicate whether the statement is true or false