How does money make the circular flow model more efficient
A. Neither the product nor resource market can exist without money.
B. Money gives firms an advantage over households, since they have more money.
C. Money makes the product market more important than the resource market
D. Having a common medium of exchange, like money, eliminates the need to barter.
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If interest rates in Europe fall below interest rates in the United States, then, other things equal, the demand for euros will decrease
a. True b. False Indicate whether the statement is true or false
A perfect monopoly:
A. restricts output to maximize profits. B. has no competition at all. C. has complete market control. D. All of these statements are true.
Why is the aggregate expenditure model important to economists?
a. It helps explain fluctuations in the economy that can cause major disruptions. b. It illuminates methods of fostering long-term growth in the economy. c. It explains why the economy sometimes produces beyond the natural rate of real output. d. It aids economic planning by providing a measure of the level of inflation in the economy.
Falling output, in the short run, could be due to:
A. an increase in short-run aggregate supply. B. a reduction in aggregate demand. C. an increase in long-run aggregate supply. D. an increase in aggregate demand.