1) An open economy is one in which: there is trade in goods and services with the rest of the
2) In a small open economy, if domestic investment exceeds domestic saving, then the extra
investment will be financed by: borrowing from abroad. \
1 ) The circular flow model shows that households use income for: consumpotion , taxes , saving
2 ) okay
3 ) The neoclassical theory of distribution explains the allocation of: income among factors of
4 ) Economic profit is zero if: all factor
The rate of inflation is the: percentage change in the level of prices.
Currency equals: the sum of coins and paper money.
All of the following assets are included in M1 except: money market deposit accounts
Credit cards: may affect the dem
1 ) Endogenous variables are: determined within the model.
2 ) Variables that a model tries to explain are called: Endogenous
3 ) okay
4 ) An assumption of (sticky price ) is more plausible for studying the short-run behavior of the
economy, while an assu
1) John Maynard Keynes wrote that responsibility for low income and high unemployment in
economic downturns should be placed on: low aggregate demand.
2) Assume that the money demand function is (M/P)d = 2,200 200r, where r is the interest rate in
1 ) The economic statistic used to measure the level of prices is (CPI)
2 ) When a firm sells a product out of inventory, investment expenditures ( decraese ) and
consumption expenditures ( increase ).
3 ) When bread is baked but put away for later sale,
1) The natural rate of unemployment is:the average rate of unemployment around which the
2) Which of the following is an example of frictional unemployment? Dave searches for a new
job after voluntarily moving to San Diego.
1. Short-run fluctuations in output and employment are called: business cycles.
2. A 5 percent reduction in the money supply will, according to most economists,
reduce prices 5 percent: in the long run but lead to unemployment in the short
3. The rel
Topic: Institutional roles in issuing and processing credit cards
Most of people use credit cards when they have consume behaviors. That is mean
the consumer to acquire, use, dispose of consumer goods or services and various