When E increases by 5%, we know that
A) a real appreciation will occur if P decreases by 5%.
B) a real depreciation will occur if P also increases by 5%.
C) a nominal appreciation will occur.
D) a nominal depreciation will occur.
C
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Under conditions of perfect competition, an individual producer
a. charges a price higher than the market price. b. endeavors to undercut the market price. c. accepts the market price. d. advertises product quality.
Approaching a business cycle trough we find actual real GDP ________ natural real GDP, so inflation is ________
A) below, slowing down B) below, speeding up C) above, slowing down D) above, speeding up
Compared to the United States, the income distribution in other major industrial nations tends to be
a. more concentrated b. less concentrated c. similar d. impossible to calculate e. not comparable because tax structures differ among countries
Economists disagree about many things. When those disagreements are about which model best explains the economy, these disagreements are primarily over "positive" statements
a. True b. False