If the rate of growth in real GDP exceeds the rate of growth in the money supply, the quantity theory of money predicts a price deflation
Indicate whether the statement is true or false
TRUE
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Which of the following statements best describes the actions of the economists and policymakers of the Great Recession?
a. The economists and policymakers of the Great Recession era were not content to let the markets recover from recession without taking proactive measures to support consumption and investment. b. The economists and policymakers of the Great Recession era were content to let the markets recover from recession without taking proactive measures to support consumption and investment. c. The economists and policymakers of the Great Recession era were not content to let the markets recover from recession without taking reactive measures to support consumption and investment. d. The economists and policymakers of the Great Recession era were content to let the markets recover from recession without taking reactive measures to support consumption and investment.
Suppose Turkey increases its saving rate. In the long run
a. the growth rates of productivity and real GDP per person increase. b. productivity and real GDP per person increase. c. the growth rate of productivity increases, and real GDP per person increases. d. productivity increases, and the growth rate of real GDP per person increases.
Suppose that Figure 7.4 shows a monopolist's demand curve, marginal revenue, and its costs. The monopolist would maximize its profit by charging a price of:
A. $35. B. $25. C. $20. D. $16.
Because models are used to explain economic behavior
A) the assumptions must be complex while the models themselves are simple. B) models must be complex. C) models must be simple. D) models can be either simple or complex so long as it explains economic behavior.