Refer to Figure 12.4. As a result of the monetary policy taking effect after the housing bubble had already burst, real GDP will be ________ potential GDP and the rate of inflation will be ________ the rate of inflation when the economy was initially
in equilibrium. A) greater than; greater than
B) greater than; less than
C) less than; less than
D) less than; equal to
C
Economics
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List some of the problems that may arise when prices are controlled
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Which of the following is NOT a characteristic of monopolistic competition?
A) product differentiation B) a large number of entry barriers C) advertising D) a significant number of sellers
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________ highlights the importance of fiscal policy as a determinant of good macroeconomic performance
A) The real business cycle model B) The traditional Keynesian model C) The new Keynesian model D) Rational expectations
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If the price of coffee is $2 a pound, how much is Juan willing to supply per year?
a. 10 pounds
b. 30 pounds
c. 50 pounds
d. 70 pounds
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