Would the use of money, as opposed to barter, increase the growth rate of real GDP in a country over time? Why or why not?
What will be an ideal response?
Yes, because money makes exchanges easier and increases specialization. Greater specialization raises productivity, which increases the growth rate of real GDP.
Economics
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How should the central bank design its monetary policy during a recession if the nominal interest rate has already hit the zero lower bound?
What will be an ideal response?
Economics
"Peak" pricing can best be defined as
a. setting higher prices to reflect higher demand. b. pricing to obtain maximum profit. c. setting price higher when demand is more elastic. d. raising price to determine elasticity.
Economics