Low standards reduce production costs and change a nation's comparative advantage
Indicate whether the statement is true or false
FALSE
You might also like to view...
In long-run macroeconomic equilibrium
A) real GDP equals potential GDP. B) the price level is fixed and aggregate demand determines real GDP. C) real GDP and the price level are determined by short-run aggregate supply and aggregate demand and long-run aggregate supply is irrelevant. D) real GDP is less than potential GDP.
National income is the income that individuals and firms earn from their production.
Answer the following statement true (T) or false (F)
You want to make a 10% real return on a loan that you are planning to make, and the expected inflation rate during the period of the loan is 10%. You should charge a nominal interest rate of
A. 0%. B. 5%. C. 10%. D. 20%.
The primary tool utilized by the Federal Reserve today in conducting monetary policy is
a. the discount rate. b. reserve requirements. c. open market operations. d. selective credit controls.