In macroeconomics short-run...
What will be an ideal response?
actual real GDP may be less than or more than potential GDP
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The Romer model suggests that there is a trade-off between ________
A) the use of resources in research and development and the productiveness of R&D B) the rate of saving and the long-run growth of output C) per capita output in the short-run and long-run D) the size of the total population and the saving rate
The increased level of excess reserves that many banks held in 2008 made traditional monetary policy less effective
a. True b. False Indicate whether the statement is true or false
If an economy has a trade policy of a fixed exchange rate, then its monetary and fiscal policies are:
A. more restricted when dealing with domestic goals. B. less restricted when dealing with domestic goals. C. independent of the trade policy. D. independent of the trade regime.
A free market with externalities ______ social surplus.
Fill in the blank(s) with the appropriate word(s).