In a typical year, how accurate are forecasts of inflation and real GDP?
a. within 8-10 percentage points
b. within 2-3 percentage points
c. within 3/4 of 1 percentage point
d. within 1/4 of 1 percentage point
c
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Americans would probably be supportive of
A. strict controls on hours of work. B. limits on income potential. C. mandatory work limits. D. loose controls on economic activities.
Clipping coins created inflation because:
A. it decreased the money supply. B. it decreased the stock of capital goods. C. it increased the stock of capital goods. D. it increased the money supply.
A cartel is a group of firms that try to monopolize the market.
a. true b. false
Use a graph to show the effects of a contractionary monetary policy to reduce inflation and move an economy back to potential real GDP. Explain what happens to aggregate demand, real GDP, and the price level
What will be an ideal response?