Macroeconomic forecasting is made more difficult due to the fact that
A) deviations from trend in real GDP are persistent.
B) turning points are hard to predict.
C) there is no regularity in comovements.
D) consumption is smooth.
B
You might also like to view...
Figure 5-18
In Figure 5-18, point D for the consumer
a.
will be chosen because total utility is larger there than at point C.
b.
would not be chosen because it is less desirable than point C.
c.
is unattainable, given the consumer's budget.
d.
has total utility equal to point C.
If the domestic producers of a good are hurt by a free trade, it suggests that the country:
A. is a net exporter of that good. B. has a comparative advantage in that good. C. is not able to produce that good. D. is a net importer of that good.
When the economy is in the Keynesian range, an increase in aggregate demand will increase _____ without increasing _____.
Fill in the blank(s) with the appropriate word(s).
If the government regulates a natural monopoly by forcing the firm to set price equal to marginal cost,
A) the firm will earn a negative economic profit. B) the firm will earn zero economic profit. C) the firm will earn a fair economic profit. D) the firm will earn a positive and large economic profit.