A relatively flat LM curve implies that wide fluctuations in the goods sector cause
A) wide fluctuations in real output.
B) wide fluctuations in the price level.
C) wide fluctuations in the interest rate.
D) crowding out of private investment.
A
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The best example of a cyclically unemployed individual is
A) Charles who lost his job as a real estate salesperson when the housing market went soft because of a recession. B) Alice who quit her job to enter college. C) Mary who lost her job in the textile industry following a decrease in the tariff on textiles. D) Bob who has just graduated from college and is entering the labor market.
The fact that output gaps will not last indefinitely, but will be closed by rising or falling inflation is the economy's:
A. income-expenditure multiplier. B. self-correcting property. C. short-run equilibrium property. D. long-run equilibrium property.
The stock of labor talents and skills is known as
a. a public good. b. the functional distribution. c. human capital. d. enterprise.
What involves taking the risks that are necessary to seek out business opportunities?
A. Invention B. Benchmarking C. Averaging D. Entrepreneurship