A traditional definition of recession is
a) any GDP gap which persists for 9 months or more
b) deflation or a slowing of the inflation rate for one year or more
c) a temporary shock to the economy resulting in the need for fiscal or monetary stimulus
d) at least two successive quarters of positive unemployment
e) negative GDP growth for half a year or more
e) negative GDP growth for half a year or more
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Give an example from your text of a nontariff measure that could reduce the quantity of imports or exports
What will be an ideal response?
In a fiduciary monetary system, money is backed by
A) the public's confidence that the assets will continue to be accepted as money. B) the intrinsic value of the materials used to make the assets. C) the assets of the institutions that issue the various assets used as money. D) gold.
This table shows the different combinations of goods that Jack can consume, given that his income to spend on these two items is $10.
Considering the information in the table shown, if we assume Jack is a rational utility maximizer, then we can predict he will buy which bundle with his $10?
A. A
B. B
C. C
D. D
We could try to use a powerful computer to construct a macroeconomic model including tens of thousands of demand and supply curves, for every market in the economy. This would not be a useful undertaking because
a. it would not be worth the increased level of complication and effort needed to collect all information b. the model would be simplistic c. the model would inevitably leave out important information d. the suggested prices would inevitably be wrong in each market e. the model would not be realistic