Starting at full employment, a business cycle can be described by the following sequence: ________ equilibrium, ________ equilibrium, ________ equilibrium.
What will be an ideal response?
below full-employment
full-employment
above full-employment
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The largest single component of M2 is
A) currency held by the public. B) money market mutual funds. C) demand deposits. D) savings deposits.
Average total costs are
A) total costs divided by total output. B) total output divided by total costs. C) the change in total costs divided by the change in output. D) the change in output divided by the change in total costs.
A decrease in the interest rate causes
A) movement up the IS curve. B) movement down the LM curve. C) the IS curve to shift to the left. D) the LM curve to shift to the right.
Unlike discretionary fiscal policies, automatic stabilizers have a quick impact and therefore do not suffer from time lag
a. True b. False Indicate whether the statement is true or false