An example of non discretionary policy making is
A) a rule under which the Fed targets the inflation rate.
B) expansionary fiscal policy.
C) changes in the interest rate initiated by the Fed.
D) a Congressional tax-rate cut aimed at boosting real GDP.
Ans: A) a rule under which the Fed targets the inflation rate.
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What does it mean for a nation to have an absolute advantage in producing a product?
What will be an ideal response?
An HMO hires radiology services from India to cut costs. If all else remains equal, this will
A) decrease the financial account. B) decrease the balance of trade. C) increase the current account balance. D) decrease net exports.
If Jim pays $1000 to John: a. GDP will increase by $1000
b. GDP will increase, but we cannot determine by what amount. c. nominal GDP will increase, but we cannot be sure if real GDP will increase or decrease. d. we need more information in order to determine whether or how much GDP will change.
Which statement is most likely correct about supply?
a. When economists refer to supply, they are referring to a certain point on the supply curve, or a quantity on the supply schedule. b. When economists refer to supply, they are referring to the relationship between a range of prices and the quantities supplied at those prices. c. When economists refer to supply they are referring to a specific point on the curve, not the entire curve. d. When economists refer to supply, they are referring to the relationship between a range of prices and the quantities demanded at those prices.