New Keynesian theory says that
a. changes in the money supply can have long run and short run effects on real variables.
b. changes in the money supply can have short run effects on real variables, but not long run effects.
c. changes in the money supply can have long run effects on real variables, but not short run effects.
d. changes in the money supply have no effect on real variables in the short run or the long run.
B
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To two hunters, a deer running in a forest is
A) nonrival and nonexcludable. B) nonrival and excludable. C) rival and nonexcludable. D) rival and excludable.
_____ refers to the situation faced by an insurance plan whose costs steadily increase as worse risks migrate toward it and better risks migrate away
a. Adverse selection b. Lemons problem c. Moral hazard d. Death spiral
When economists refer to the economy's self-correcting mechanism, they are referring to the fact that the
a. economy will react automatically to a recessionary gap through inflation. b. economy will react automatically to an inflationary gap through deflation. c. economy will react automatically to an inflationary gap through inflation. d. simple multiplier is greater than the complex multiplier.
Entrepreneurs are people who ______.
a. sit on a corporate board of directors
b. earn profits
c. pay dividends
d. startup businesses