Explain the real-nominal principle
What will be an ideal response?
The real-nominal principle explains that what matters to people is the real value of money or income—its purchasing power—and not the face value of money or income.
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Absent any violations of the first welfare theorem, the competitive equilibrium is efficient.
Answer the following statement true (T) or false (F)
Why must long-run equilibrium in monopolistic competition occur at the point at which the demand curve is tangent to the average total cost curve?
What will be an ideal response?
In the Keynesian model, if planned investment exceeds planned saving at full-employment output,
a. unemployment is likely to develop. b. government spending may be needed to balance the economy. c. inflation is likely to occur. d. None of these.
Money is the means of payment in the economy. Examples of money include
a. currency, checking account balances, and credit card limits b. ATM cards, checking account balances, and currency c. travelers' checks and credit card limits d. currency, stocks, and travelers' checks e. currency, travelers' checks, and personal checks