When the price level ________, equilibrium expenditure ________ and the quantity of real GDP demanded ________
A) rises; decreases; increases
B) rises; increases; increases
C) rises; increases; decreases
D) falls; increases; decreases
E) falls; increases; increases
E
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If the inflation premium is 3% and the real interest on a loan is 4%, then the nominal interest rate is
A. 0.75%. B. 1%. C. -1%. D. 7%.
An imperfectly competitive firm faces a demand curve that is ________, while a perfectly competitive firm faces a demand curve that is ________.
A. perfectly inelastic; perfectly elastic. B. horizontal; downward-sloping. C. perfectly inelastic; downward-sloping. D. downward-sloping; perfectly elastic.
Government intervention to alter market structure or prevent abuse of market power is the basic purpose of
A. Antitrust policy. B. Social demand. C. Government taxes. D. Merit goods.
Capitalism and socialism have not existed forever. Capitalism came into existence in the:
A. mid-1700s and socialism came into existence in the early 1900s. B. mid-1800s and socialism came into existence in the early 1900s. C. early 1900s and socialism came into existence in the mid-1800s. D. early 1900s and socialism came into existence in the mid-1700s.