Suppose that in a new classical model the public anticipates that policymakers will increase aggregate demand. However, aggregate demand increases by less than what the public anticipated. The result in the short run is that Real GDP ____________ and the price level ____________
A) decreases; decreases
B) increases; increases
C) increases; decreases
D) decreases; increases
D
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National saving is defined as the amount of
A) business saving. B) household saving. C) business saving and household saving. D) private saving and government saving.
Diseconomies of scale are most likely at very low levels of output
a. True b. False Indicate whether the statement is true or false
One of the advantages of floating exchange rates is that:
a. consumers always know how much imported goods cost. b. businesses always know, in advance, what future exchange rates will be. c. countries are free to pursue their own macroeconomic policies without maintaining exchange rates. d. countries cannot act independently and must thus coordinate their macroeconomic policies. e. the global interest rate tends to decline to the lowest possible level.
Typically, economists mean M1 when they refer to money
Indicate whether the statement is true or false