Consider the Simplest Macro Model with a Constant Price Level

question 55

Multiple Choice

Consider the simplest macro model with a constant price level and demand-determined output.If national income is less than its equilibrium level,it is likely that firms' inventories are ________,and so national income tends to ________.

• A)accumulating; rise
• B)accumulating; fall
• C)being depleted; rise
• D)being depleted; fall
• E)constant; fall

Understand the concept of denouncing criminals and its implications.

Discuss criticisms of just deserts theory.

Explain the role of censure in punishment theories.

Know the functionalist perspective on punishment and society.

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Definitions:

Effective Spread

The measure of the actual cost of a trading transaction, calculated as the difference between the executed trade price and the midpoint of the best bid and ask quotes at the time of the trade.

SEC

The U.S. Securities and Exchange Commission, a federal agency responsible for enforcing federal securities laws and regulating the securities industry.

Tick Size

The minimum price movement of a trading instrument in the market, which can affect the precision of price and order placement.

Bid-Ask Spread

The difference between the highest price a buyer is willing to pay (bid) and the lowest price a seller is willing to accept (ask) for an asset.