The Great Depression was an era marked by
a. steady growth in GDP and a decline in the rate of unemployment.
b. a prolonged period of high unemployment and output substantially below its potential.
c. a large decline in the stock market followed by a steady recovery.
d. a failure of expansionary monetary policy to stimulate output and employment.
B
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On the graph above, unplanned inventory investment occurs if the economy is moving from point ________ to point ________
A) D; C B) C; B C) B; A D) all of the above E) none of the above
Abstract terms like "cost of living" and "price level" are meaningless to ordinary individuals
a. True b. False Indicate whether the statement is true or false
Money demand refers to
a. the total quantity of financial assets that people want to hold. b. how much income people want to earn per year. c. how much wealth people want to hold in liquid form. d. how much currency the Federal Reserve decides to print.
When MR < MC for a firm, the firm should
A) reduce its level of output. B) stay at the same level of output. C) stop producing. D) increase output, unless P < AVC.