Which of the following is a statement with positive economic analysis?
A. Lower wages increase employment and reduce the unemployment rate.
B. A reduction in the size of the budget deficit will reduce interest rates.
C. Slower money growth reduces inflation.
D. All of these
Answer: D
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Housing assistance is obtained by all these below the poverty line
Indicate whether the statement is true or false
One tradeoff society faces is between efficiency and equality. Define each term. If the U.S. government redistributes income from the rich to the poor, explain how this action affects equality as well as efficiency in the economy
Using Figure 1 above, if the aggregate demand curve shifts from AD1 to AD2 the result in the short run would be:
A. P1 and Y2. B. P3 and Y1. C. P2 and Y2. D. P2 and Y3.
Investors tend to trade on their beliefs rather than on pure facts. This statement might explain why securities markets have ________ that the efficient market hypothesis does not predict.
a. such a large trading volume b. short sales c. a random walk d. arbitrage