When a U.S. Senator tells a campaign crowd that "High inflation rates are a much more serious economic problem than high unemployment rates," it is an example of
A. an empirically proven fact.
B. a normative statement.
C. a microeconomic argument.
D. a positive statement.
Ans: B. a normative statement.
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The Marshall-Lerner Condition states that, all else equal
A) nominal appreciation improves the current account if export and import volumes are sufficiently elastic with respect to the real exchange rate. B) real depreciation improves the current account if export and import volumes are sufficiently inelastic with respect to the real exchange rate. C) real appreciation improves the current account if export and import volumes are sufficiently elastic with respect to the real exchange rate. D) real depreciation improves the current account if export and import volumes are sufficiently elastic with respect to the real exchange rate. E) the sum of import and export elasticities must be equal to one in order for depreciation to occur.
Money is each of the following except
A) a medium of exchange. B) a store of value. C) a means by which the central bank can always, and permanently, affect production. D) a unit of account.
The current tax system is extremely progressive at the extreme ends of the income distribution
a. True b. False
To maximize profits in the off-peak period, the ________ marginal revenue is set equal to the ________ marginal cost.
A) off-peak; short-run B) off-peak; long-run C) peak; long-run D) peak; short-run