Most economists believe that real and nominal variables are highly intertwined and that money can temporarily move real GDP away from its persistent trend in
a) neither the short run nor the long run.
b) the very long run.
c) the short run.
d) the medium long run.
Ans: c) the short run.
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Suppose that at the beginning of a loan contract, the real interest rate is 4% and expected inflation is currently 6%. If actual inflation turns out to be 7% over the loan contract period, then
A) lenders gain 1% of the loan value. B) borrowers lose 3% of the loan value. C) lenders gain 3% of the loan value. D) borrowers gain 1% of the loan value.
Which of the following actions did Congress NOT take in the 1930s, in an effort to prevent future financial crises like the stock market crash of 1929?
A. Glass-Steagall Banking Act B. Formation of the SEC C. Formation of the FDIC D. Federal Reserve Act
Most individual's income peaks when they are about
A) 25. B) 40. C) 50. D) 65.
In long-run equilibrium for a monopolistically competitive firm, the firm's ________ curve is just tangent to its average total cost curve.
A. demand B. supply C. marginal revenue D. marginal cost