Which of the following correctly describes the macroeconomic long run?
a. A price level and level of real GDP where price expectations are correct, aggregate quantity supplied equals the potential output level, and aggregate demand equals aggregate supply.
b. A price level and level of real GDP where price expectations are correct, aggregate quantity supplied exceeds or falls short of the potential output level, and aggregate demand equals aggregate supply.
c. A price level and level of real GDP where price expectations are correct, aggregate quantity supplied equals the potential output level, and aggregate demand exceeds or falls short of aggregate supply.
d. A price level and level of real GDP where price expectations are correct, aggregate quantity supplied exceeds or falls short of the potential output level, and aggregate demand exceeds or falls short of aggregate supply.
a
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Entrepreneurship is characterized by
a. the ability to visualize and undertake economically beneficial projects. b. originality and innovation. c. leadership and discovery. d. all of the above.
If the cross price elasticity of demand between Los Angeles Lakers professional basketball tickets and Los Angeles Dodgers professional baseball tickets is positive, then the two goods are
A. not related. B. substitutes. C. complements. D. unrelated.
A home mortgage is a good example of:
A. a high risk loan. B. an unsecured loan. C. the problem of adverse selection. D. a secured loan.
Between September 2007 and December 2008, the FOMC reduced the target federal funds rate 5.25 percentage points toward zero. A reason for this was that the FOMC:
A. feared over stimulating the economy. B. was feeling political pressure to act. C. was acting preemptively. D. was taking a wait and see approach to previous cuts.