In the aggregate expenditures model, the equilibrium real GDP is
A. assumed to be equal to the full-employment real GDP level.
B. always less than the full-employment real GDP level.
C. always above the full-employment real GDP level.
D. not necessarily equal to the full-employment real GDP.
Answer: D
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The precautionary demand for money is the demand for money:
a. for normal transactions purposes. b. for normal investment purposes. c. for special stock purchases. d. to protect against inflation. e. to cover unexpected events.
Economists may hold many different views about the economy but on this they all agree: That price is always lower in a perfectly competitive market than in a monopoly market
Indicate whether the statement is true or false
The reason that land is more valuable at one location than another is because
A. rents are higher there. B. the demand for that land has bid up its price. C. the supply of that land is more limited than at other locations.
A scientist who is studying earthquakes includes the impact of wind when performing some tests of damages to structures. This is an example of
A. failing to hold all other things constant. B. failing to understand how to do scientific methodology. C. irrational behavior in noneconomic situations. D. accounting for every possible phenomena that may effect the problem under examination.