If the price of inputs falls and the level of consumer indebtedness rises:
a. Aggregate demand falls, and aggregate supply rises.
b. Aggregate demand and aggregate supply rise.
c. Aggregate demand rises, and aggregate supply falls.
d. Neither aggregate demand nor aggregate supply change.
e. None of the above.
.A
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The long-standing debate over rules versus discretion in macroeconomics centers on the following statement ________
A) "discretionary policy can lead to bad long-run outcomes but rules lack flexibility in the short-run" B) "the speed with which the self-correcting mechanism in the economy acts is in question" C) "the speed with which unemployment tends to disappear is debatable" D) all of the above E) none of the above
Entry continues as long as
A) economic profits are zero. B) accounting profits are positive. C) accounting profits are positive and economic profits are negative. D) economic profits are positive.
Which of the following would economic freedom lead to?
a. A higher standard of living b. Better living conditions c. Longer life expectancy d. Better education e. All of these
The cost to a member bank of borrowing from the Federal Reserve is called the:
A. reserve requirement. B. price of securities in the open market. C. discount rate. D. yield on government bonds.