Economic models simplify reality and help us to better understand important aspects of it
Indicate whether the statement is true or false
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A good example of central planning at work in the U.S. is:
A. McDonald's fries being the same everywhere. B. New York City's rent control program. C. car manufacturers establishing suggested retail prices. D. unions working with businesses to establish wages.
The GDP can overstate the economy because ___________.
a. it excludes self-production, increased leisure time, and improved health. b. it includes self-production, increased leisure time, and improved health. c. it excludes harm caused by pollution, crime, and income inequality. d. it includes harm caused by pollution, crime, and income inequality.
In economics, secondary effects refer to the
What will be an ideal response?
Based on the graph showing the effects of a government budget surplus, when a surplus makes the loanable funds supply shift from S1 to S2, the real interest rate will ______.
a. remain at r1
b. remain at r2
c. rise from r2 to r1
d. drop from r1 to r2