A) $600
B) $800
C) $350
D) $700
Why do environmentalists worry about faster economic growth? Economists concede that faster growth is not always better. Why?
Environmentalists worry that the sheer increase in the volume of goods imposes enormous costs on society in the form of crowding, pollution, global climate change, and proliferation of wastes that need disposal.
Economists concede that faster growth is not always better. An economy that grows too fast may generate inflation. Inflation rises when aggregate demand races ahead of aggregate supply. An economy will become inflationary when people's demands for goods and services expand faster than its capacity to produce them. So we probably do not want to grow faster than the growth rate of potential GDP, at least not for long.
Economics
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How does the U.S. economy rank in size?
A. First in economic output B. Second in economic output C. Third in economic output D. Fourth in economic output E. Fifth in economic output
Economics
By using open market operations, the Federal Reserve
A) adjusts the supply of reserves to keep the federal funds interest rate equal to its target. B) controls banks' demand for reserves, thereby keeping the federal funds rate equal to its target. C) adjusts the demand of reserves to keep bank rates in line with the federal funds rate target. D) adjusts the supply and demand of reserves to keep the federal funds interest rate equal to its target. E) None of the above answers is correct.
Economics
Financial securities that represent partial ownership of a corporation are known as
A) bonds. B) stocks. C) coupons. D) dividends.
Economics
Consider the following: Farmer Jones bought seed and fertilizer for $100. He grew wheat that he sold to the Acme Bread Company for $200. Acme Bread produced and sold bread to the ABC Grocery Store for $250. Consumers bought the bread from the grocery for $350. How much was added to the GDP?
Economics