It is costly to hold money because
A. in doing so, one sacrifices interest income.
B. bond prices are highly variable.
C. the rate at which money is spent may decline.
D. deflation may reduce its purchasing power.
Answer: A
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Which of the following is most likely to result in a temporary spurt in the growth of real output that cannot be maintained in the long run?
a. an anticipated increase in aggregate demand b. an unanticipated increase in aggregate demand c. an increase in long-run aggregate supply (LRAS) d. an increase in resource prices relative to product prices
_____ illustrates all combinations of amounts of different products an economy can produce with full employment of its resources and maximum feasible productivity of those resources.
Fill in the blank(s) with the appropriate word(s)