High inflation helps people store wealth over time, which helps them to be able to smooth out their consumption over their lifetimes
Indicate whether the statement is true or false
FALSE
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If the natural unemployment rate is 5 percent and the current unemployment rate is 6 percent, then the economy is
A) producing a level of Real GDP that is greater than the level of natural Real GDP. B) in an inflationary gap. C) producing a level of Real GDP that is less than the level of natural Real GDP. D) a and b E) b and c
When the error term is not normally distributed, then
? is sometimes called the:
A. ?asymptotic standard error. B. ?asymptotic t statistic. C. ?asymptotic confidence interval. D. ?asymptotic normality.
Figure 9-1
?
In Figure 9-1,
A. the 45° line represents all points where spending equals output. B. to the left of equilibrium GDP, inventories will rise. C. to the right of equilibrium GDP, inventories will fall. D. the level of equilibrium GDP equals potential GDP.
Answer the following statement true (T) or false (F)
1) Farmers typically sell their products in highly competitive markets and buy in imperfectly competitive markets. 2) If the demand for agricultural products is inelastic, a relatively small increase in supply will cause farm prices and incomes to decline. 3) The use of price-support programs in agriculture has hastened the exodus of resources from agriculture. 4) The concept of parity has provided a rationale for government price supports for farm products.