The government's main statistic for forecasting business cycles is the index of coincident indicators
a. True
b. False
Indicate whether the statement is true or false
False
You might also like to view...
Moral hazard problems arise when
A) lenders have difficulty in distinguishing between good and lemon firms. B) when a downturn in economic activity makes repaying loans difficult for borrowers. C) borrowers have an incentive to act in ways that do not reflect the lender's interests. D) borrowers default on loans.
What famous economist said, "By pursuing his own interest he (an individual) frequently promotes that of the society more effectually than when he really intends to promote it?"
a. Alfred Marshall. b. Adam Smith. c. Karl Marx. d. Robert L. Heilbroner.
Describe the circumstances under which it would be better for the government to sell pollution permits than to levy a corrective tax
Assuming that the SRAS curve is upward sloping, which of the following statements represents a correct and sequentially accurate economic explanation?
A) The demand for bonds falls, the price of bonds falls, the interest rate rises, investment spending declines, the AD curve shifts to the left, the price level declines and Real GDP decreases. B) The demand for bonds rises, the price of bonds rises, the interest rate rises, investment spending declines, the AD curve shifts to the left, the price level declines and Real GDP decreases. C) The supply of bonds rises, the price of bonds falls, the interest rate falls, investment spending rises, the AD curve shifts to the right, the price level declines and Real GDP decreases. D) The supply of bonds falls, the price of bonds rises, the interest rate falls, investment spending rises, the AD curve shifts to the right, the price level declines and Real GDP increases.