The problem arising in the used car market can be alleviated by
A. providing buyers with more complete information on the condition of a used car.
B. sellers offering warranties.
C. having third parties certify the condition of a used car.
D. All of these statements are true.
A. providing buyers with more complete information on the condition of a used car.
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Private markets will lead to a ________ vaccination rate because:
A. suboptimally low; the external benefit of being vaccinated would not fully be taken into account by decision makers. B. suboptimally high; the external cost of being vaccinated would not fully be taken into account by decision makers. C. socially optimal; price serves as a signal of marginal benefit and marginal cost. D. inequitable; health care services should not be provided based on ability to pay.
Suppose the money supply is set to grow at 7%, real GDP grows at 5%, and the expected real interest rate on Aaa corporate bonds averages 6%
Using the quantity theory of money and the Fisher equation, the nominal interest rate on the Aaa corporate bond should be A) -2%. B) 2%. C) 6%. D) 8%.
A decrease in the price level causes a ________ the IS curve and a ________ the aggregate demand curve
A) movement up along; movement up along B) shift to the right of; movement up along C) movement down along; movement down along D) shift to the left of; movement down along
Fluctuations around the long-run aggregate supply curve are:
A. called the business cycle. B. experienced as expansions, recessions, and recoveries. C. normal for an economy. D. All of these are true.