Economic expansions in Europe and China would cause
a. the U.S. price level and real GDP to rise.
b. the U.S. price level and real GDP to fall.
c. the U.S. price level to rise and real GDP to fall.
d. the U.S. price level to fall and real GDP to rise.
a
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According to the above table, the country will import the good if the world price is less than ________ and will export the good if the world price is more than ________
A) $4; $4 B) $4; $8 C) $10; $10 D) $8; $4 E) $6; $6
Starting at full employment (RGDPNR), a. expansionary monetary policy can potentially result in increased real output, but only in the short run
b. expansionary monetary policy can potentially result in increased real output in both the short run and long run. c. contractionary monetary policy can potentially result in increased real output, but only in the short run. d. contractionary monetary policy can potentially result in increased real output in both the short run and long run.
Which of the following statements is false?
A) Currency is money, but money is more than just currency. B) M1 is a component of M2. C) Retail money market mutual funds are part of M2, but institutional money market mutual funds are not. D) Credit cards are money since they are widely accepted for purposes of exchange. E) Money reduces the transaction costs of making exchanges.
When a product is defined as homogeneous,
A. buyers prefer one seller's product to another's. B. buyers are indifferent as to which seller's product they buy. C. sellers are indifferent as to the quantity of the product they sell. D. sellers have an incentive to charge a price higher than the market price.