If the nominal interest rate is 4 percent and expected inflation is 2.5 percent, then what is the expected real interest rate?

Assume the development of a new technology that allows widgets to be produced for less. Also, assume that widgets are a key input in the production of whatchamacallits. As a result of this new technology, what would an economist expect to happen in the market for whatchamacallits?

a. the demand curve will shift to the left b. the supply curve will shift to the left c. the demand curve will shift to the right d. the supply curve will shift to the right e. none of the above

Laissez-faire refers to a program of minimal interference in the market system.

Answer the following statement true (T) or false (F)