The transmission mechanism alters the real gross domestic product through changes in the price level
a. True
b. False
Indicate whether the statement is true or false
False
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Neoclassical growth theory placed emphasis on two resources:
A) capital and entrepreneurship. B) natural resources and capital. C) capital and labor. D) labor and entrepreneurship. E) labor and natural resources.
If the frictional unemployment rate is 2 percent, the structural unemployment rate is 3 percent, and the overall unemployment rate is 9 percent, how much is the cyclical unemployment rate?
What will be an ideal response?
Demand-side market failures occur when:
A. the demand and supply curves don't reflect consumers' full willingness to pay for a good or service. B. the demand and supply curves don't reflect the full cost of producing a good or service. C. government imposes a tax on a good or service. D. a good or service is not produced because no one demands it.
Recall the Application about weather-linked crop insurance to answer the following question(s).According to the Application, farmers in poor countries hesitate to increase their investments in fertilizer and seeds due to:
A. unpredictable weather patterns. B. very predictable weather patterns. C. lack of property rights. D. government regulation.