When the values of coincident variables are declining, aggregate economic activity
A. will begin to decline within six months.
B. might start to decline in the next year.
C. is declining.
D. has been declining for at least six months.
Answer: C
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Under laissez-faire, the allocation of resources among different products depends on
A. consumer preferences. B. production costs. C. Both a and b are correct. D. Neither a nor b is correct.
The ________ of information is low at the beginning of the search process, but rises as one's search widens. In contrast, the ________ of information is high at the beginning of the search process, but falls as one becomes more and more knowledgeable about the market
a. total benefit, marginal cost b. marginal benefit, marginal cost c. marginal cost, marginal benefit d. marginal benefit, total cost
Starting from long-run equilibrium, if the public anticipates that policymakers will increase aggregate demand by less than policymakers do increase aggregate demand, and if the short-run aggregate supply curve fully adjusts to the (incorrectly) anticipated increase in aggregate demand, then Real GDP will __________ and the price level will __________
A) rise; rise B) decline; fall C) stay constant; rise D) decline; rise
The Stability and Growth Pact (SGP) of 1997 proposed:
A) only a budgetary surveillance process. B) no sanctions for "excessive deficit procedure." C) signing mandatory pledges to uphold the criteria. D) a budgetary surveillance process and sanctions for "excessive deficit procedure."