When a consumer wants to compare the price of one product with another, money is primarily functioning as a:
A. Store of value
B. Unit of account
C. Checkable deposit
D. Medium of exchange
B. Unit of account
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In the long run, the inflation rate
A) must be equal to the natural unemployment rate. B) can take on any value. C) is equal to the natural inflation rate. D) is zero. E) cannot be negative.
Today's forward rate must equal the future spot rate
Indicate whether the statement is true or false
Suppose a particular production process results in a large amount of pollution and the government decides to impose a tax to correct for this externality, such that the socially optimal output will be produced. The tax will have the effect of shifting the
A. marginal private benefit curve to the right. B. marginal social benefit curve to the right. C. marginal private cost curve to the left. D. marginal social cost curve to the left. E. marginal private cost curve to the right.
The Romer model is distinct from the Solow model in that the former assumes that ________
A) technology is fixed B) an increase in price affects quantity demanded, rather than demand C) some labor is devoted to producing new technology D) output per worker is fixed