Which of the following is not correct?
a. The U.S. economy has never experienced deflation.
b. Since 1965, the U.S. nominal interest rate has exceeded the U.S. real interest rate.
c. Since 1965, the U.S. economy has experienced rising consumer prices in most years.
d. During deflation, the real interest rate exceeds the nominal interest rate.
a
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Why are aggregate demand shocks not a good explanation of business cycles in the New Keynesian model?
A) The wage is not constant. B) Employment does not fluctuate. C) Prices in the model are procyclical. D) Consumption is not procyclical.
A customs union is an organization of nations whose members:
a. have impenetrable trade barriers among themselves but impose no trade barriers on nonmembers. b. have no trade barriers among themselves but impose common trade barriers on nonmembers. c. have no trade barriers among themselves but each member country chooses its own trade policies toward nonmember countries. d. retaliate each other by raising reciprocal tariffs. e. neither have trade barriers among themselves nor impose any restriction on the nonmember countries.