Consider a country that produces only two goods: pineapples and tractors. Suppose it is possible for this country to increase its production of pineapples without producing fewer tractors. In this case, its current output combination is inefficient
Indicate whether the statement is true or false
TRUE
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Suppose the measured unemployment rate is 4.5% and the true natural rate of unemployment is 5.1%. What should policymakers do in this situation? Suppose that the chair of the Federal Reserve believes the natural rate of unemployment to be 4.0%
What will the chair of the Fed do in this situation, and will this be a good decision?
The cross-price elasticity of demand of products "M" and "N" is zero. This implies that "M" and "N" are
A) substitute products. B) complementary products. C) independent products. D) unique goods, as the price elasticity of demand for one of them is zero.
The wealth effect of a change in the price level refers to the fact that wealthier individuals tend to spend more on foreign goods
a. True b. False Indicate whether the statement is true or false
Which of the following are not financial intermediaries?
a. banks b. mortgage companies c. finance companies d. check cashing companies