Simplifying assumptions always affect the conclusions derived from an economic model
a. True
b. False
B
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The most common type of discount lending that the Fed extends to banks is called
A) seasonal credit. B) secondary credit. C) primary credit. D) installment credit.
Economic indicators, like unemployment claims and the average workweek, which change before real GDP changes, are called:
a. leading. b. lagging. c. coincident. d. structural.
A person removes the anti-pollution devices on his automobile. An external cost associated with this is
A) the feeling of guilt the person feels for violating the law. B) the ticket he gets when a highway patrol officer pulls him over. C) the man's neighbor washes his car more often because of increasing smog. D) the man buys less gasoline, reducing the income of local gas stations.
Real-business-cycle theory focuses on factors affecting:
A. Aggregate demand B. Aggregate supply C. The velocity of money D. Consumer spending