A key result of the equilibrium aggregate expenditure model is that it:
A. can explain why the economy should always be at natural rate GDP.
B. illustrates how the government always moves us towards equilibrium GDP.
C. can illustrate how an economy can be at an equilibrium that is below natural rate GDP.
D. shows how classical notion that the economy will always tend towards natural rate GDP is correct.
C. can illustrate how an economy can be at an equilibrium that is below natural rate GDP.
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Risk-averse people prefer to hold assets whose returns are positively correlated
Indicate whether the statement is true or false
Which of the following is a statement of positive economics? a. New tax laws are needed to help the poor
b. Teenage unemployment should be reduced. c. We should increase Social Security payments to the elderly. d. An increase in tax rates will reduce unemployment.
If the prices of imported resources decrease, then this event would most likely:
a. Decrease aggregate supply b. Increase aggregate supply c. Increase aggregate demand d. Decrease aggregate demand
One city that has repealed many of its rent-control laws is
A. Miami. B. San Jose. C. New York. D. Boston.