The idea that policy actions have no real effects in the short run if they are anticipated and no real effects in the long run is called the
A. adaptive proposition.
B. money illusion proposition.
C. Keynesian proposition.
D. policy irrelevance proposition.
Answer: D
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Excess reserves of banks equal
a. actual reserves minus required reserves. b. actual reserves minus demand deposits. c. assets minus the liabilities of the banks. d. required reserves minus actual reserves.
A market served by only one firm is called a(n):
A. perfectly competitive market. B. monopoly. C. oligopoly. D. Any of these could be correct.
The production possibilities curve (PPC) illustrates economic growth by a(n)
A. inward shift of the PPC. B. bowed-out shape of the PPC. C. outward shift of the PPC. D. movement along the PPC.
Accounting costs represent
A. explicit costs paid by the firm. B. both sunk and future costs. C. long run costs only. D. opportunity costs.