If the price level is 90, then the price level will ________ because ________
A) either fall or rise; markets are unstable and macroeconomic equilibrium is difficult to predict
B) fall; the aggregate quantity demanded is less than the aggregate quantity supplied
C) rise; the aggregate quantity demanded is less than the aggregate quantity supplied
D) rise; the aggregate quantity demanded is greater than the aggregate quantity supplied
E) fall; the aggregate quantity demanded is greater than the aggregate quantity supplied
D
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What do the legislative and implementation lags have in common?
A) They are both more important for monetary than fiscal policy. B) They are both more important for fiscal than monetary policy. C) They are both harder to measure but less variable than the effectiveness lag. D) They both take place before the data and recognition lags. E) none of the above
The market value of all final goods and services in an economy produced by resources owned by people of that economy is:
a. personal income. b. national income. c. capital income. d. gross national product. e. gross domestic product.
Suppose the official gold value of the Brazilian real changes from 527 reals per ounce to 508 reals per ounce. We can then say that:
a. the Brazilian real has depreciated in value as a consequence of free market fluctuations. b. the Brazilian real has appreciated in value. c. gold is now more expensive to purchase in Brazil than it was before. d. the Brazilian real has been devalued. e. the Brazilian economy is expected to experience rapid inflation.
The elasticity of any demand curve is the same as its slope
a. True b. False Indicate whether the statement is true or false