In the model of the open economy with perfect capital mobility, ________ is an exogenous variable
A) Y
B) C
C) I
D) S
E) r
A
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For economic freedom to exist,
A) copyright laws must be abolished and markets supervised by the government. B) democracy must exist. C) human capital must be given away free. D) property rights must be protected and markets must be free. E) money must be free.
An inflationary gap means that the level of real GDP at the short-run macroeconomic equilibrium
A) is less than full-employment GDP. B) equals full-employment GDP. C) is more than full-employment GDP. D) may be less than, more than, or the same as full-employment GDP depending on the level of potential GDP.
In the above figure, the efficient amount of output is ________ units
A) 25 B) 50 C) 75 D) 100
The Fed’s principal objective is to
A. make profits to pay into the U.S. Treasury. B. collect tax revenues. C. supervise the business decisions of banks. D. manage the money supply and interest rates.