The k-percent rule, an example of a money targeting rule, relies on a relatively stable
A) supply of money.
B) real interest rate.
C) demand for money.
D) federal funds rate.
E) nominal GDP.
C
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The difference between slope and elasticity is that slope measures absolute change and elasticity measures percentage change.
Answer the following statement true (T) or false (F)
The kinked demand curve model is based on the assumption that each firm
A) considers its rival's output to be fixed. B) considers its rival's price to be fixed. C) believes rivals will match all price changes. D) believes rivals will never match price changes. E) none of the above
The LRAS curve is ____ with real output levels that ____
a. upward sloping; vary positively with the price level b. upward sloping; vary negatively with the price level c. vertical; are equal to the natural level of real output at all price levels d. vertical; can be either greater than or less than the natural level of real output
In a free market, economic activity is coordinated by
a. central planners. b. prices. c. costs. d. majority rule.