An economic model can be defined as
a. a testable claim which can be evaluated with proper data.
b. a representation of a theory or a part of a theory.
c. another word for theory.
d. a method to distinguish correlation from causation.
e. All of the above are correct.
b
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An increase in the general price level is termed:
a. the Consumer Price Index. b. inflation. c. deflation. d. stagflation. e. nominal pricing.
The Fed can drive up interest rates by selling government securities and decreasing the money supply
a. True b. False Indicate whether the statement is true or false
Refer to the diagram. In the P 1 P 2 price range, demand is:
A. of unit elasticity.
B. relatively inelastic.
C. relatively elastic.
D. perfectly elastic.
An increase in wealth that doesn't affect labor supply would cause the IS curve to ________ and the FE line to ________
A) shift down and to the left; be unchanged B) shift down and to the left; shift left C) shift up and to the right; be unchanged D) shift up and to the right; shift left