When there is an inflationary gap:
a. Real output exceeds the natural level of real output.
b. Real output equals the natural level of real output
c. Real output is less than the natural level of real output.
d. Any of the above is possible.
b
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Positive neoclassical economists are different from positive behavioral economists in that positive behavioral economists place more value on having models accurately represent people's true happiness.
Answer the following statement true (T) or false (F)
Bonds with ________ tend to have lower interest rates than bonds with ________
A) high liquidity; low liquidity B) high default risk; low default risk C) longer maturity; shorter maturity D) high tax burdens on their interest; low tax burdens on their interest
How does an increase in the price of laptop memory chips affect the market of laptops?
a. The demand curve for laptops shifts to the right b. The demand curve for laptops shifts to the left c. The supply curve for laptops shifts to the right d. The supply curve for laptops shifts to the left
In the classical model, the supply of funds to the loanable funds market comes from
a. household saving and the government's budget surplus, if any b. net taxes c. household saving and the government budget deficit, if any d. planned investment e. total income