The neutrality of money is the idea that:
A. virtual money has a neutral effect in the economy.
B. hard money has a neutral effect in the economy.
C. aggregate price levels do not affect real outcomes in the economy.
D. in real terms, it makes no difference who is spending each dollar.
Answer: C
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If a rent ceiling is below the equilibrium rent, some allocation scheme must be used. The allocation methods include all of the following EXCEPT
A) charging the equilibrium rent. B) refusing to rent to individuals on the basis of sex, race, or some other attribute. C) requiring a payment, such as key money, in addition to the rent. D) the creation of a black market. E) increased search activity.
Suppose the U.S. GDP growth rate is slower relative to other countries' GDP growth rates. This will
A) shift the aggregate demand curve to the left. B) move the economy down along a stationary aggregate demand curve. C) shift the aggregate demand curve to the right. D) move the economy up along a stationary aggregate demand curve.