Economists acting as scientists make positive statements, while economists acting as policy advisers make normative statements
a. True
b. False
Indicate whether the statement is true or false
True
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The consequence for society of the free-rider problem is:
A. valuable goods and services are undersupplied. B. goods and services not valued by the society will be oversupplied. C. valuable goods and services are underdemanded. D. valuable goods and services are oversupplied.
______ representation emphasizes how representatives act for the people and promote their interests.
A. Descriptive representation B. Formalistic representation C. Symbolic representation D. Substantive representation
Refer to the information provided in Scenario 25.2 below to answer the question(s) that follow.SCENARIO 25.2: The following table shows the changes in deposits, reserves, and loans of 4 banks as a result of a $100,000 initial deposit in Bank No. 1. Assume all banks are loaned up.
Refer to Scenario 25.2. What is the money multiplier in this economy?
A. 10 B. 16.67 C. 20 D. 50
If potential output equals 4,000 and short-run equilibrium output equals 3,500, there is a ________ gap and the Federal Reserve must ________ real interest rates in order to close the gap.
A. expansionary; raise B. recessionary; raise C. recessionary; reduce D. recessionary; not change