External shocks can
A. Improve the validity of economic forecasts based on leading economic indicators.
B. Cause economic forecasts based on leading economic indicators to become inaccurate.
C. Be predicted using standard statistical techniques.
D. Assist the Fed with the implementation of monetary policy.
Answer: B
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Economists call the physical cost of changing prices
A) menu costs. B) increasing profits. C) inflationary suffrage. D) the cost of doing business.
In the above figure, if the market produces the efficient amount of purses then producer surplus equals
A) triangle bcd. B) triangle adc. C) rectangle bcde. D) trapezoid adec.
The quantity of money is $1 billion, the price level is 1.10, and real GDP is $10 billion. What is the velocity of circulation?
What will be an ideal response?
Refer to Figure 10.2. Assume the economy is initially at equilibrium at potential GDP of $500 billion. If the MPC = 0.80 , and real GDP falls to Y2 = $400 billion, the vertical distance between AE1 and AE2 must be
A) $8 billion. B) $20 billion. C) $80 billion. D) $100 billion.