Assuming a perfectly competitive market implies that households have perfect knowledge of qualities and prices of everything available in the market.
Answer the following statement true (T) or false (F)
True
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The short-run effects of an increase in the expected price level include
a. a lower level of output and a lower price level. b. a lower level of output and a higher price level. c. a higher level of output and a lower price level. d. a higher level of output and a higher price level.
In the open-economy macroeconomic model, the quantity of dollars demanded in the market for foreign-currency exchange
a. depends on the real exchange rate. The quantity of dollars supplied in the foreign-exchange market depends on the real interest rate. b. depends on the real interest rate. The quantity of dollars supplied in the foreign-exchange market depends on the real exchange rate. c. and the quantity of dollars supplied in the market for foreign-currency exchange depend on the real exchange rate. d. and the quantity of dollars supplied in the market for foreign-currency exchange depend on the real interest rate.
The amount of good A given up for good B in trade is the
A. Exploitation of consumers. B. Comparative advantage. C. Terms of trade. D. Absolute advantage.
Which of the following is a transfer payment?
A. the president's salary B. veterans' benefits C. the NASA budget D. schoolteachers' salaries