Under the gold standard, the government must have enough gold to back up any
A) change in its currency's exchange rate. B) foreign currency deposits in its central bank.
C) increase in money demand. D) increase in the money supply.
D
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"Expansionary fiscal policy is always 100 percent effective when the short-run aggregate supply curve is horizontal." Is this statement TRUE?
A) yes, because theoretically nothing else can offset the effects of fiscal policy B) yes, when the long-run aggregate supply curve is horizontal too C) no, because crowding out could take place D) no, because the increased spending may cause the price level to increase
Economists monitor economic growth by keeping track of
a. the stock market b. population growth c. the total quantity of goods and services produced in the United States each year d. the inflation rate e. the distribution of income among U.S. states
When we add together all the individual firm's demands for loanable funds, we get the
a. equilibrium interest rate b. total number of machines purchased c. market demand for loanable funds d. price paid for additional capital e. marginal factor cost curve
In the fourteenth century it is estimated that deaths resulting from the bubonic plague reduced the population by about a third. Assuming diminishing returns, the decrease in population should have
a. increased productivity and real GDP per person. b. increased productivity but decreased real GDP per person. c. increased real GDP per person, but decreased productivity. d. decreased productivity and real GDP per person.