A Purchasing Manager's Index below 50 indicates
A) a declining retail sector.
B) a downturn in economic activity.
C) an increase in bond prices in the near future.
D) a declining manufacturing sector.
D
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The self-correcting tendency of the economy means that rising inflation eventually eliminates:
A. unemployment. B. exogenous spending. C. recessionary gaps. D. expansionary gaps.
In a period of hyperinflation, the velocity of circulation increases because
A) the real interest rate rises. B) households and firms spend money as soon as they receive payment. C) the nominal interest rate decreases. D) money is valuable everyone wants it. E) potential GDP increases.
Demonstrate how a permanent fiscal expansion will not increase output in the long run
What will be an ideal response?
Under both the gold standard and the gold exchange standard countries bought and sold U.S. dollars to maintain a fixed exchange rate with the dollar
a. True b. False Indicate whether the statement is true or false