In the Keynesian model, if the actual price level is higher than the expected price level, then
a. output is above potential output.
b. output is always at potential output.
c. output is below potential output.
d. output is moving towards potential output.
C
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If the indifference curves between two goods are L-shaped, the goods are
A) complementary goods. B) substitute goods. C) normal goods. D) inferior goods.
Assuming the Federal Reserve is targeting the interest rate, a decrease in money demand will
a. shift the LM schedule to the right. b. shift the LM schedule to the left. c. shift the IS schedule to the right. d. not shift the LM schedule. e. none of the above.
What is not true about interest income derived from loanable funds? It
a. is considered to be the profit due to an entrepreneur b. originates in theft of property, according to Marxists c. is the reward for an earlier decision to postpone consumption d. is justified because savers have property rights to their savings and are entitled to the rewards they generate e. is paid in the loanable funds market
Historical data sets are available only in printed form.
Answer the following statement true (T) or false (F)