A useful macroeconomic model
A) is extremely realistic.
B) is simple.
C) never generates testable hypotheses.
D) provides a lot of intricate details.
B
You might also like to view...
Present the case for floating exchange rates
What will be an ideal response?
The additional utility gained from consuming an additional unit of a good is called:
A. marginal utility. B. total utility. C. costly utility. D. a util.
According to the quantity theory of money, the price level decreases in equal proportion to
A) a decrease in the nominal interest rate. B) an increase in the real interest rate. C) an increase in the income velocity of money. D) a decrease in the money supply.
The model of expectations in which the current level of inflation depends on past levels is referred to as:
A) realized real expectations. B) adaptive expectations. C) rational expectations. D) composite expectations.