Technological progress is one of the factors affecting increase in aggregate supply.

Perfect competition is a market in which there are many firms each selling an identical commodity; there are many buyers; there are no restrictions on entry into and exit from the industry; firms in the industry have no advantage over potential new entrants; firms and buyers are well informed about the price of the commodity that each firm is produced.

Economic development is a broader concept than economic growth. Economic development reflects social and economic progress and requires economic growth. Economic growth is a vital and necessary condition for development, but it is not a sufficient condition as it cannot guarantee development.

Since deposits (including time deposits) is a kind of debt for a bank, it must be located on the liabilities side of the bank’s balance sheet.

The rule of 70 allows us to easily calculate how much it takes for a variable to double itself. If a variable grows at a pace of x percent per year, then it will take approximately70/x years for that variable to double in value. In this case, 70/30 makes 2.3 years, which makes almost 27 months.

Commodity money is the object which has both a value as a good and a medium of exchange.

The result of price increases is calculated by extracting the real rate from the nominal economic growth. That is, 12.53-4.38=8.15.

Non-tariff restrictions imposed in the national economy: Health standards, sanitary and phyto-sanitary standards, environmental standards, labor standards, product standards, production subsidies, internal charges, etc. This category of non-tariff restrictions are the behind-the border restrictions.

Gresham’s Law states that the bad money drives out the good money in the market.

Velocity of money is the number that represents, on average, how many times one unit of money is used for purchasing final goods and services.

Stagflation is the situation in which prices increase while production decreases.

Deflation can be described as reduction of prices in an economy.

According to the so-called divine coincidence in economics literature, output stability is provided automatically in an economy where price stability is provided.

The effects in I and II are related to expansionary economic policies.

The main motive for international trade is to increase the economic gains or benefits not only for the individuals but also for the whole society.

The increase in the money supply plays an important role in the emergence of demand-pull inflation as well as the consistent inflation.

if the economy is operating in a region where the aggregate supply curve is steeper, such as point B, an expansionary policy creates a small increase in production, while it causes a larger increase in the general price level.

General equilibrium is determined by the implementation of two economic policies:  expenditure-changing policies and expenditure switching policies. In other words, internal equilibrium and external equilibrium is achieved by an effective implementation of the expenditure changing and expenditure-switching policies.

Correct answer is C.

There are a number of criticisms against the use of HDI to represent the economic development, including:

1. The HDI index does not distinguish between different rates of development within a country such as between urban and traditional rural communities.
2. Giving equal weight to the three main components is rather arbitrary.
3. Development is largely about freedom, but the index does not directly measure this.
4. It uses GDP per capita, but there is no indication of the distribution of income in the country.
5. The HDI excludes many aspects of economic and social life that could be regarded as contributing to or constraining development, such as crime, corruption, poverty, deprivation, and negative externalities.