When a permanent negative supply shock hits the economy ________
A) in the long-run, output is permanently lowered whether the central bank reacts or not
B) inflation decreases in the short-run
C) there is no long-run effect on inflation whether the central bank reacts or not
D) all of the above
E) none of the above
A
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The quote, "If I have seen farther than others, it is because I have stood on the shoulders of giants" is attributed to ________
A) Albert Einstein B) Paul Romer C) Friedrich Nietszche D) Sir Isaac Newton
Aggregate demand is _____________.
Fill in the blank(s) with the appropriate word(s).
Which of the following is NOT an alleged "unrealistic" assumption that proponents of behavioral economics suggest are commonly utilized in traditional economic models based on the rationality assumption?
A. unbounded will power B. unbounded selfishness C. unbounded resources D. unbounded rationality
In the last few decades, tariffs have:
A. risen more in developing nations than in developed countries. B. risen more in developed nations than in developing countries. C. risen by more than 20 percent in developing countries. D. fallen by more than 20 percent in developing countries.