The quantity of money demanded will decrease if the
A) nominal interest rate decreases.
B) price level rises.
C) real interest rate decreases.
D) inflation rate decreases.
E) nominal interest rate increases.
E
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U.S. real GDP in 2007 was $13.25 trillion and U.S. real GDP in 2008 was $13.31 trillion. What was the economic growth rate of the United States during this period?
A) 18 percent B) -1.36 percent C) 0.45 percent D) 6.9 percent E) $1.8 trillion
Nonactivists of the policies believe that
A) wages and prices are very flexible. B) the self-correcting mechanism is very rapid. C) government action is unnecessary. D) all of the above.
Economic profits are equal to accounting profits:
a. In all cases b. In no cases c. When implicit costs are zero d. When implicit costs equal explicit costs
Answer the following statement(s) true (T) or false (F)
1. Multimillionaires do not experience scarcity because they can afford all the goods and services they desire. 2. Economists consider the concept of need difficult to define because it is hard to compare “needs” among people. 3. “Average cost” is another name for “marginal cost.” 4. Economists assume that people make the best choice they can because they do not want to make themselves worse off.