For which of the following will the law of one price hold best?
A) shirt
B) butter
C) gold
D) milk
C
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Use the classical (RBC) IS—LM—FE model to show the effects on the economy of a temporary adverse supply shock; for example, an increase in the price of oil
You should show the impact on the real wage, employment, output, the real interest rate, consumption, investment, and the price level.
If a firm's economic profit is positive, its accounting profit must also be positive
a. True b. False
Which of the following is true of a net debtor nation?
a. It experiences a trade surplus for five consecutive years. b. It experiences a trade deficit for five consecutive years. c. It owes more to the rest of the world than it is owed. d. It owes less to the rest of the world than it is owed. e. It experiences persistent current account surplus.
The concept of "lender of last resort" is that when
a. lending decreases, the Fed will be the last to resort to higher interest rates. b. borrowing increases, the Fed will be the last to increase lending. c. commercial banks are hesitant to lend, the Fed will step in and increase reserves. d. a borrower has tried everyone else, the Fed will lend directly to them.