Refer to Figure 17-1. Suppose that the economy is currently at point A, and the unemployment rate at A is the natural rate. What policy would the Federal Reserve pursue if it wanted the economy to move to point B in the long run?
A) Sell treasury bills.
B) Raise the discount rate.
C) Decrease the money supply.
D) Buy treasury bills.
E) No policy will move the economy to point B in the long run.
E
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When a group lobbies for the prevention of free trade, the most likely reason is
A) rent seeking. B) tariff revenue. C) defense against expensive domestic labor. D) preservation of the environment.
If there are short-run profits in a competitive industry, will firms enter or exit over the long run? At what point will the final equilibrium be achieved?
What will be an ideal response?
Economist Steven Levitt argues the Supreme Court decision ________ had an impact on reducing crime during the 1990s because it is associated with "wantedness."
A. on gay marriage B. on school bussing C. on abortion D. on prayer in schools
Suppose that Scoobania, which has full employment, can obtain 1 unit of capital goods by sacrificing 2 units of consumer goods domestically but can obtain 1 unit of capital goods from another country by trading 1 unit of consumer goods for it. This
reality illustrates: A. a rightward (outward) shift of the production possibilities curve. B. increasing opportunity costs. C. achieving points beyond the production possibilities curve through international specialization and trade. D. productive efficiency.