The conditions for long-run equilibrium include each of the following, except:
A. current inflation equals expected inflation.
B. current inflation is steady and equals target inflation.
C. current output equals potential output.
D. imports equal exports.
Answer: D
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If an increase in income results in higher prices for yachts, we can conclude
A. that yachts are inferior goods. B. that there was a decrease in the supply of yachts. C. that there was an increase in the supply of yachts. D. that yachts are normal goods. E. there’s no relationship between income and the demand for yachts.
Economic theory defines capital as
A) anything that is scarce. B) non-human resources. C) produced resources used to produce future goods. D) resources containing a positive opportunity cost. E) stocks and bonds.
What is produced and exchanged in the real sector?
A. Money B. Financial assets C. All assets with a money price D. Goods and services
How is the burden of a tax divided? (i) When the tax is levied on the sellers, the sellers bear a higher proportion of the tax burden. (ii) When the tax is levied on the buyers, the buyers bear a higher proportion of the tax burden. (iii) Regardless of whether the tax is levied on the buyers or the sellers, the buyers and sellers bear an equal proportion of the tax burden. (iv) Regardless of
whether the tax is levied on the buyers or the sellers, the buyers and sellers bear some proportion of the tax burden. a. (i) and (ii) only b. (iv) only c. (i), (ii), and (iii) only d. (i), (ii), and (iv) only