Suppose the economy is initially experiencing a short-run recessionary ga
A) lead to a decrease in prices with an increase in real GDP.
B) reduce the size of the recessionary ga
B
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Fred purchases a bond, newly issued by the Big Time Corporation, for $10,000. The bond pays $400 to its holder at the end of the first, second, and third years and pays $10,400 upon its maturity at the end of four years. The principal amount of this bond is ________, the coupon rate is ________, and the term of this bond is ________.
A. $10,000; 4%; four years B. $10,000; $400; 4% C. $400; 40%; four years D. $10,400; 4%; four years
"In the long run, a perfectly competitive firm's average total cost is always below the market clearing price." Agree or disagree? Why?
What will be an ideal response?
The short-run effect of an increase in the money supply is to
A. increase nominal GDP but decrease the price level. B. increase the price level only. C. increase real GDP only. D. increase both real GDP and the price level.
Which of the following would contribute to a positive trade balance for a country?
A. importing financial services B. having tourists visit the country C. importing textiles D. having foreign residents buy the government bonds of the country