When looking at a graph of aggregate demand, which of the following is correct?
a. There are nominal variables on both the vertical and the horizontal axes.
b. There are real variables on both the vertical and horizontal axes.
c. The variable on the vertical axis is nominal; the variable on the horizontal axis is real
d. The variable on the vertical axis is real; the variable on the horizontal axis is nominal
c
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The long-standing debate over rules versus discretion in macroeconomics centers on the following statement ________
A) "discretionary policy can lead to bad long-run outcomes but rules lack flexibility in the short-run" B) "the speed with which the self-correcting mechanism in the economy acts is in question" C) "the speed with which unemployment tends to disappear is debatable" D) all of the above E) none of the above
Markets do not always allocate resources efficiently, however, government always does
a. True b. False