To achieve long-run equilibrium in an economy with a recessionary gap, without the use of stabilization policy, the inflation rate must:

Dennis notices that jackets are on sale for $99. In this case money is functioning as a

A) medium of exchange. B) unit of account. C) store of value. D) payments-system ruler.

Economists assume that people are motivated by

A) benevolence. B) altruism. C) greed. D) rational self-interest.