If you exhibit endowment effect, then you
A) decide rationally when making decisions about selling but not when making decisions about buying.
B) have a strong attachment to things you already own.
C) buy something you cannot afford.
D) decide rationally when making decisions about buying but not when making decisions about selling.
B
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As the best measure of the size of economic fluctuations associated with a business cycle, economists typically use
A) real GDP. B) the deviation of real GDP from potential GDP. C) potential GDP. D) the deviation of real GDP from nominal GDP.
What is the principal reason that economists give for the existence of deflationary and inflationary gaps?
A. Wages are flexible in the short run. B. Wages are flexible in the long run. C. Wages are fixed in the long run. D. Wages are fixed in the short run.