What makes the macroeconomic performance of the 1993 to 1998 period so unusual is the
a. simultaneous occurrence of unemployment and inflation increases.
b. simultaneous occurrence of real GDP decreases and inflation rate increases.
c. occurrence of real GDP decreases while the unemployment rate increases.
d. simultaneous occurrence of reduced unemployment rates and falling inflation rates.
d
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In the long run, firms in a competitive market make zero economic profit. This induces most firms to leave the industry
Indicate whether the statement is true or false
If a bank had demand deposits of $80 million and it faced a 25 percent required reserve ratio, it would be able to have a maximum amount of how many dollars worth of loans?
a. $20 million b. $40 million c. $60 million d. $80 million
The optimal time for the implementation of contractionary fiscal policy would be
a. before inflation accelerated. b. after inflation accelerated. c. after unemployment increased. d. after the price level had risen significantly.
The quantity equation is always true because it:
A. has been empirically tested. B. is a law of economics. C. is the definition of velocity rewritten. D. has been historically verified.