Some economists argue that the federal government should normally run a deficit at potential GDP, with the borrowed funds applied to
A) consumption goods.
B) investment goods.
C) social security benefits.
D) health care costs.
Answer: B
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In 2008, the financial and housing crisis caused firms to decrease their profit expectations. As a result, there was a ________ in the ________ for loanable funds curve
A) leftward shift; demand B) movement upward along; demand C) leftward shift; supply D) movement downward along; supply
Nominal GDP =________ where the price level is the ________
A) Price level ÷ Real GDP; GDP deflator B) Price level × Real GDP; CPI C) Price level ÷ Real GDP; CPI D) Price level × Real GDP; GDP deflator E) none of the above
Which of the following is false?
a. Product liability laws can make it unprofitable to sell shoddy merchandise, providing a substantial incentive to provide safe products independent of government regulations. b. Asymmetric information exists when the available information is initially distributed in favor of one party to a transaction relative to another. c. In adverse selection situations, it is rational for a seller with more information about a product to provide a truthful and complete disclosure and make that fact known to a potential buyer. d. Moral hazard arises in part from the fact that it is costly for an insurer to monitor the behaviors of the insured party.
Union membership in the United States has fallen compared to what it was in the 1950s.
Answer the following statement true (T) or false (F)