The term "nominal income" refers to
A. Money income measured in current dollars.
B. Real purchasing power.
C. Money income adjusted for any change in the price level.
D. Real purchasing power deflated for rising prices.
Answer: A
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Stabilization of business cycle fluctuations focuses on the long run
Indicate whether the statement is true or false
After a policy of import substitution has begun, a developing country finds that employment has not risen significantly and that urban unemployment seems to be rising. Explain how these developments might be connected
What will be an ideal response?
The liabilities side of a central bank's accounts consists of
A) deposits held by private banks. B) currency in circulation. C) deposits held by private banks and currency in circulation. D) deposits held by foreign banks, domestic assets, and currency in circulation. E) foreign assets and domestic assets.
If a natural disaster were to cause a negative long-run supply shock to the economy, once the economy adjusts, the new equilibrium will be at a:
A. higher price level and lower level of output. B. lower price level and lower level of output. C. higher price level and higher level of output. D. lower price level and higher level of output.