Briefly state the three key facts about economic fluctuations
(1) Economic fluctuations are irregular and unpredictable, (2) most macroeconomic quantities fluctuate together, and (3) as output falls, unemployment rises.
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When differences between nominal GDP and real GDP result due to price changes and nothing else is compared, an index is created called the
A) consumer price index. B) index of leading indicators. C) GDP deflator. D) inflation index.
An increase in disposable income ________
A) has no effect on the supply of loanable funds curve B) shifts the supply of loanable funds curve rightward C) shifts the supply of loanable funds curve leftward D) results in movement up the supply of loanable funds curve
The huge national debt of the United States is likely to lead to bankruptcy of the national government
a. True b. False Indicate whether the statement is true or false
During the Great Depression fiscal and monetary policy was characterized by
a. an increase in tax rates and a contraction in the money supply. b. a decrease in tax rates and a contraction in the money supply. c. a decrease in tax rates and an expansion in the money supply. d. an increase in tax rates and an expansion in the money supply.