Which of the following is true about the Taylor principle?
A) it explains the link between higher inflation and higher real interest rates
B) it is the foundation for an upward sloping MP curve
C) it reflects the practice of monetary policy
D) all of the above
E) none of the above
D
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The economy pictured in the figure below has a(n) ________ gap with a short-run equilibrium combination of inflation and output indicated by point ________. 
A. recessionary; B B. recessionary; C C. recessionary; A D. expansionary; A
What are three things to measure for in evaluating the performance of the capital markets?
A) level of intertemporal trade, international trade, portfolio diversification B) level of portfolio diversification, balanced capital accounts, global inflation C) level of portfolio diversification, intertemporal trade, efficiency of foreign exchange D) onshore-offshore interest rate parity, level of portfolio diversification, stability of eurocurrency market E) onshore-offshore interest rate parity, interest parity and foreign exchange, balanced capital accounts
Minimum efficient scale refers to the lowest level of output at which
A) the firm can earn a profit. B) average cost is minimized. C) the firm will operate. D) the average cost curve is downward sloping.
What are the three interrelated features of the economic perspective?
Please provide the best answer for the statement.