The classical dichotomy refers to the separation of
a. prices and nominal interest rates.
b. taxes and government spending.
c. decisions made by the public and decisions made by the government.
d. real and nominal variables.
d
You might also like to view...
The increase in quality bias in the consumer price index refers to the idea that price increases in the CPI reflect pure inflation, but ________ quality increases. This causes the CPI to ________ the cost of the market basket
A) not; overstate B) also; understate C) also; overstate D) not; understate
Which of the following can issue bonds?
A. the government B. corporations C. government agencies D. all of the above
Assume the firms in a perfectly competitive industry are initially in long-run equilibrium and the cost of labor increases. In the short run, this will cause firms in the industry to:
A) reduce output and incur a loss. B) reduce output and earn a positive economic profit. C) increase output and incur a loss. D) increase output and earn a positive economic profit.
A firm bought a pizza oven for $13,500 and if it shut down now, could sell the oven for $9,500. Which of the following statements is TRUE?
A) The relevant cost of the oven when considering shutting down is $13,500. B) The relevant cost of the oven when considering shutting down is $9,500. C) The relevant cost of the oven when considering shutting down is $4,000. D) The cost of the oven does not matter when deciding whether or not to shut down.