We need to study a model in which real and nominal variables interact in order to understand how the economy works
a) in the short run but not the long run.
b) without regards to any time period, whether the short run or the long run.
c) in both the short run and the long run.
d) in the long run but not the short run.
Ans: a) in the short run but not the long run.
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The Stability and Growth Pact (SGP) of 1997 proposed:
A) only a budgetary surveillance process. B) no sanctions for "excessive deficit procedure." C) signing mandatory pledges to uphold the criteria. D) a budgetary surveillance process and sanctions for "excessive deficit procedure."
Entrepreneurs are people who
A) accept ultimate responsibility for the projects they undertake. B) are hired by others to manage business enterprises. C) are hired by others to organize business enterprises. D) own the resources used in the production process. E) prefer a small chance for a large profit to a large chance for a small profit.