When the Fed lowers the legal reserve requirement, the money supply contracts
Indicate whether the statement is true or false
F
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Starting from long-run equilibrium, an increase in autonomous consumption results in ________ output in the short run and ________ output in the long run.
A. higher; higher B. higher; potential C. lower; higher D. lower; potential
What is rent-seeking behavior?
What will be an ideal response?
The theory of PPP suggests that if one country's price level rises relative to another's, its currency should
A) depreciate in the long run. B) appreciate in the long run. C) depreciate in the short run. D) appreciate in the short run.
If real GDP helps to predict the path of a particular macroeconomic variable, it is said to be a
A) conventional variable. B) coincident variable. C) leading variable. D) lagging variable.