A Phillips curve shows the short-run relationship between
A) potential GDP and real GDP.
B) the nominal interest rate and the real interest rate.
C) tax rates and tax revenues.
D) the unemployment rate and the inflation rate.
D
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If the level of investment in an economy is $4,000 and the GDP of the economy is $10,000, the savings rate in the economy must be:
A) 40%. B) 44%. C) 30%. D) 20%.
What would happen if a perfectly competitive firm decided to raise its prices by 1%?
a. The firm would increase revenues by 1%. b. The firm would increase market share by 1%. c. The firm would lose all of its market to its competitors. d. The firm would put all of its competitors out of business.
Private investment from a foreign country is known as
A. development assistance. B. foreign direct investment. C. technical progress. D. the cost disease of personal services.
What reasons do monetarists give for downgrading the importance of fiscal policy relative to monetary policy?
What will be an ideal response?