The LM curve shows points of equilibrium in the money market and combinations of
A) inflation and unemployment.
B) aggregate supply and aggregate demand.
C) income and the interest rate.
D) money supply and money demand.
C
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The self-correcting tendency of the economy means that falling inflation eventually eliminates:
A. exogenous spending. B. recessionary gaps. C. expansionary gaps. D. unemployment.
According to the table, the price of Big Macs converted to U.S. dollars varies widely around the world. This shows that Big Mac pricing does NOT follow the theory of
A) Ricardian equivalence. B) purchasing power parity. C) supply and demand. D) real versus nominal prices.
When economists assume that people are rational, they are assuming that people generally agree what is good for human beings.
Answer the following statement true (T) or false (F)
In the U.S., time use data is collected on a national level by the:
a. Consumer Product Safety Commission b. Federal Reserve Board c. Dept. of Health and Human Services d. Bureau of Labor Statistics (BLS)