An economic model should capture
A) the essential relationships that help to analyze the problem.
B) all possible variables that apply to the problem.
C) only social value related variables.
D) all of the above.
A
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The productivity curve is a relationship between ________ and ________
A) real GDP per hour of labor; capital per hour of labor B) real GDP per hour of labor; capital C) capital per hour of labor; labor per hour of capital D) real GDP; hours of labor E) real GDP; capital
Assume that yields on bonds (rate of return) begin to fall while the stock market is booming, what should we see happen to the demand and price of stocks and why?
What can we say about the opportunity cost of holding on to bonds in this situation?
With no change in fiscal policy, the budget
A. will run a surplus during a recession and a deficit during a boom. B. deficit will rise during a recession and fall during a boom. C. deficit will fall during a recession and rise during a boom. D. will remain unchanged by adverse economic conditions.
A decrease in productivity will shift
A. aggregate supply to the right. B. aggregate supply to the left. C. aggregate demand to the left. D. aggregate demand to the right.