Identify changes in three variables that would cause the FE line to shift to the right
What will be an ideal response?
An increase in productivity, an increase in the supply of capital, or an increase in the supply of labor would increase the full-employment level of output, as illustrated by a rightward shift in the FE line.
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Modeled like the 50 states in the U.S., the European Union (EU) is a type of common market in which goods, services, people, and capital can freely flow to their highest-valued use across any member state
Indicate whether the statement is true or false
The primary tool of monetary policy is:
A. the discount rate. B. the reserve requirement. C. open market operations. D. the prime rate.
Two characteristics that make owning stock attractive are:
A. unlimited liability and first claim on assets. B. each share represents a large percentage of ownership and dividends are fixed C. share prices are relatively inexpensive and are transferable. D. dividends are paid before any other distributions are made and stocks are transferable.
According to the accelerator effect, there is a tendency for investment to decrease when aggregate output decreases, thus accelerating the decline of output.
Answer the following statement true (T) or false (F)