According to Friedman, changes in the level of aggregate demand
a. are dominated by changes in the supply of money.
b. cause the levels of output and employment to deviate from their natural rate for short periods of time.
c. can cause movements of the economy away from the natural rate for at least 2 years.
d. are dominated by changes in the demand for money.
e. Both a and b.
E
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"The government should provide health care for all citizens." This statement is an illustration of:
A. positive economic analysis. B. correlation analysis. C. fallacy of association analysis. D. normative economic analysis.
Exhibit 2-13 Production possibilities curve
In Exhibit 2-13, in terms of efficiency:
A. point A is preferred to point B. B. point A is preferred to point E. C. point A is preferred to point D. D. point B is preferred to point A.
Suppose Tim's Cowboy boot factory produces in a perfectly competitive market. Suppose the average total cost of cowboy boots is $65, the average variable cost of cowboy boots is $60, and the price of cowboy boots is $62. If the firm is producing the level of output where marginal cost equals price, then in the short run the firm:
A. should shut down. B. should continue to produce since total revenue exceeds total variable cost. C. is earning a positive economic profit. D. can increase profit by increasing output.
While Africa has the largest numbers of working children, Asia has the highest proportion of working children, with an estimated one in four employed
Indicate whether the statement is true or false