Suppose two economists disagree about who would be helped or hurt by certain legislation. These disagreements
a. are positive in nature
b. are minor and rarely lead to different policies or conclusions
c. are normative in nature
d. occur as the result of a mistake made by an economist
e. occur because economic models are more complex, and subject to error, than the real world
A
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Under J.C. Penney's everyday low pricing policy, the everyday low prices
A) were always lower than the sale prices under the previous policy. B) ended up being the highest prices ever charged by the company. C) ended up being higher than the sale prices under the previous pricing policy. D) were not actually charged every day, but only once a month during half-off sales.
Refer to Table 26-3. Consider the hypothetical information in the table above for potential real GDP, real GDP, and the price level in 2016 and in 2017 if the Federal Reserve does not use monetary policy
If the Fed uses monetary policy successfully to keep real GDP at its potential level in 2017, which of the following will be lower than if the Fed had taken no action? A) real GDP and the inflation rate B) real GDP and potential GDP C) potential GDP and the inflation rate D) real GDP and the unemployment rate
The nominal interest rate: a. varies directly with the rate of expected inflation in an economy
b. is the interest rate expressed in dollars of constant purchasing power. c. equals the difference between the real interest rate and the inflation rate. d. is the basis for decisions taken by the lenders and the borrowers in an economy. e. is the percentage increase in the average price level from one year to the next.
Purchasing power parity (PPP) is a well-known theory that seeks to define relationships between currencies.
a. true b. false