According to the classical model, there is no need for government intervention in the economy. if the economy is left alone, full employment output will eventually occur
a. True
b. False
A
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For a fixed target real interest rate and target inflation rate, when inflation decreases, the Fed ________ interest rates, hence ________ short-run equilibrium output.
A. increases; increasing B. decreases; decreasing C. decreases; increasing D. increases; decreasing
In the above figure, using the slope across an arc, the slope of the curve between points a and b is
A) 1/2. B) -1/2. C) 2. D) -2.
Suppose Albania is exporting product B, and experienced economic growth biased in favor of product B as seen in the figure above. We are also told that Albania's new consumption point is at point d
Would you still consider the economic growth, which took place biased in favor of B? If Albania were a large country how would this growth affect its terms of trade?
A line that slopes downward from left to right has a positive slope.
Answer the following statement true (T) or false (F)