An approach that can be taken by someone directly involved in a transaction to solve the problems caused by information asymmetry is:
A. proofing.
B. building a reputation.
C. disclosure laws.
D. mandating that information be shared
B. building a reputation.
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In a recessionary expenditure gap, the equilibrium level of real GDP is
A. greater than planned aggregate expenditures. B. greater than full-employment real GDP. C. less than planned aggregate expenditures. D. less than full-employment real GDP.
The marginal propensity to consume (MPC) is equal to the inverse of the marginal propensity to save (MPS)
a. True b. False Indicate whether the statement is true or false
The optimal time for the implementation of restrictive fiscal policy would be
a. before inflation accelerated. b. after inflation accelerated. c. during a recession. d. after the price level had risen significantly.
The BLS has chosen 90 to represent the average 1982-1984 price level, and it now measures all other years relative to this base year.
Answer the following statement true (T) or false (F)