An economy with an expansionary gap will, in the absence of stabilization policy, eventually experience a(n) ________ in the inflation rate, leading to a(n) ________ in output.
A. decrease; increase
B. increase; increase
C. decrease; decrease
D. increase; decrease
Answer: D
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An important consequence of financial deepening is ________
A) an increase in the number of new firms B) a sharp increase in levels of saving & investment C) higher profit rates D) an expansion of bank loans relative to other funding sources
Per capita income is calculated as:
a. national income divided by number of households. b. national income divided by number of people. c. number of households divided by national income. d. number of people divided by national income. e. number of people divided by domestic income.
In the short run, those who are hurt by the minimum wage are
a. some workers who lose their jobs b. employers who have to pay more c. consumers who have to pay more for goods d. all of these
Macroeconomics is the study of economy-wide phenomena
a. True b. False Indicate whether the statement is true or false