A typical trend line drawn through a series of business cycles
a. is horizontal, indicating that the economy always returns to equilibrium
b. is horizontal, indicating that economic phases offset each other
c. is downward sloping, indicating that the unemployment rate decreases over time
d. is upwards sloping, indicating that the unemployment rate decreases over time
e. is upward sloping, indicating an annual rate of growth that is greater than zero
E
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In order to achieve a high economic freedom rating, a country must:
a. provide secure protection of privately owned property and evenhanded enforcement of contracts. b. refrain from creating barriers that limit domestic and international trade. c. rely more fully on markets rather than governments to allocate goods and resources. d. do all of these.
In the equation of exchange, the letter "V" stands for
A) variance. B) validity. C) volume. D) velocity.
From the perspective of the theory of efficient markets, explain why it may be difficult for professional portfolio managers who have an exceptional year to continuously outperform the market average.
What will be an ideal response?
Which of the following statements about the CPI and the GDP deflator is TRUE?
A. The CPI measures the price level; the GDP deflator measures the production of an economy. B. The CPI refers to a base year; the GDP deflator always refers to the current year. C. The weights given to prices are not the same. D. The GDP deflator takes the price of imported goods into account; the CPI does not.